Legal Document

339 U.S. 121 70 Supreme Court Reporter 547 94 L.Ed. 707 UNITED STATESv.COMMODITIES TRADING CORPORATION et al. COMMODITIES versus STATES. Nos. 156, 163. Argued Jan. 10, 11, 1950. Decided March 27, Rehearing Denied May 1, See 950, 800. Mr. Oscar or Haw. Hawai‘i Reports KFH45 A2 Davis, Washington, D.C., for The United States. Edward L. Blackman, New York City, Commodities Trading Corporation Justice BLACK delivered the opinion of Court. 1 brought this suit in Claims to recover 'just compensation' about 760,000 pounds whole black pepper requisitioned by War Department 1944 from Commodities' stock 17,000,000 pounds. States contended that OPA ceiling price 6.63 cents per pound was just compensation. denied this, claiming 22 pound. It argued Congress did not and could constitutionally fix as a measure determining what is compensation under Constitution also that, reasons peculiar its own situation, application instance would be particularly unjust. fixed at 15 In so doing, court took into consideration it terms 'retention value,' explained an allowance 'undoubtedly have secured had been permitted hold until after restrictions removed * *.' considered how much precise cost Commodities, prices which company sold government requisition, subsequent prices, average past 75 years. 83 F.Supp. 356, 358, 113 Ct.Cl. 244. We granted petitions both parties certiorari. 338 857, 98, 99. 2 First. questions presented are controlled clause Fifth Amendment providing private property shall 'taken public use, without compensation.' This has never attempted prescribe rigid rule all circumstances cases. Fair market value normally accepted standard. But when too difficult find, result manifest injustice owner public, courts fashioned applied other standards.1 Since standard developed context largely free controls, rigidly law raise concerning whether 'market value' can John Judge Felin & Co., 334 624, 68 1238, 92 1614. Whatever such constitutional arise, dominant always remains same: What 'just' whose taken must pay bill? word evokes ideas 'fairness' 'equity,' these were primary standards prescribed Emergency Price Control Act.2 As assurance authority administrative agency 'generally fair equitable', provided regulations subjected judicial review. All legitimate purchases sales made below prices. And most businessmen compelled sell because, example, their goods perishable businesses depended on continuous sales. Thus commodities held sale represented only but fact realized owners. Under they cannot properly ignored deciding 3 extent should govern decision another matter. expressly provide Act constitute Amendment.3 § 4(d) provides construed requiring any person sell. 1(a) declared Act's purposes 'to assure defense appropriations dissipated excessive prices' 'prevent hardships Federal, State, local governments, abnormal increases thus plainly contemplated governments able buy fulfilling wartime needs purchasers. crucial importance congressional plan stabilized war economy limit inflation prevent profiteering shown during approximately one-half nation's output services went federal, state governments.4 awards uniformly greater amount than expectations pecuniary gains condemnations might prompt many owners withhold essential materials Government them. think purpose necessities require compensation, far done consistently with objectives Amendment. 4 Second. acceptance inconsistent because fail take account factor designated value.' concept stems provision compelling his against will. Translating conferring 'right he get whatever anyone willing pay,' gave rise added order meet requirement compensation.'5 5 enacting merely refused long-existing hold' wanted create new constitution taking, engraft values kind happens time law. justifiably stretch command taken. 6 Nor we construe supporting rule. peace-time fixed, normal current value; retention treated separate factor. True, may sometimes higher buyer anticipates future rises exceptional conceived justify resort evidential forecasts potential determine present value. general rest circumstances. 7 A persuasive reason highly speculative nature proof show possible depend. case, instance, no one knew long last nor economic conditions due lead continue price-fixing legislation. Predictions subjects guesses, informed forecasts. even if predictions reasonably certain, there remained unknowns. How more purchaser paid seizure? To extent, all, lifting controls above ceilings? date estimated? indicates haphazard calculations be: figure appears rough compromise between claimed, weighted drawn varied assortment doubtful factors court. Moreover, seems completely divorced conjectured postwar price, crucially significant court's concept. 8 An equally forceful objection discrimination breed. Only limited group advantage rule: those who nonperishable products refusal governmental requisition. financially unable gamble. requisition become favored class expense fortunate. within impelled sense duty waiting premium placed recalcitrance war. 9 apply leading discriminatory unjust results required Amendment's payment 10 Third. While obstacle treating equitable' sale, room special exceptions For unfair hardship inflicted particular dealer valid 'generally' fair. Bowles Willingham, 321 503, 516—518, 64 641, 648—649, 88 892. pepper, trade generally, maximum unless sustained burden proving peculiarly applicable it.6 Cf. Marion Rye Valley R. States, 270 280, 285, 46 253, 255, 585. 11 contends proved existence conditions. points statement 'so-called case' (113 244, 357) 'investor' rather 'trader.' accumulated large supply intervals 1933—1941 period, expecting up. found expect rise: production periods abundance scarcity bound alternate, preceding years marked fluctuations fairly regular cycles. Most bought low. deprived benefits high afforded Government's taking. 12 facts situation differed degree, myriad commodity quite naturally wished Postwar inflationary influences common generally expected. cycles, seasonal otherwise, well-recognized phenomena. Doubtless steel, textiles, foodstuffs, produce evidence similar offered regard cyclical difficulty showing great bought, produced, manufactured various merchandise idea withholding markets await expected Many lost anticipated profits control Sacrifices others lot people engaged That calls sacrifices course why disproportionate borne Commodities. here like traders products, intention ultimately selling market. No entitled based speculation obtained removed. 13 Another contention turned over circumstance sufficient preclude use here. find taken, including labor costs, storage, interest, insurance, taxes expenses, 12.7 challenges findings claims selected high-cost delivery Pointing out fungible relevant asserts less price. 14 do consider contentions basis specially excluding pays negotiated Vogelstein 262 337, 340, 43 564, 565, 67 1012. underlying cases where government-controlled involved support measured neither make good losses caused purchased Especially true resulting loophole regulation available dealers enough funds storage space forced none them awarding excess final analysis arguments principle consequent controls. requires give benefit. 16 judgment reversed cause remanded directions enter appropriate ordered. 17 Reversed directions. 18 Chief VINSON DOUGLAS part case. 19 FRANKFURTER, dissenting part. 20 1933 began accumulate inventory trader investor commodity. investment policy period seventy-five regularity plantings Sumatra, French Indo-China India, supplied almost it, fluctuated world Neglect crops native growers depressed lowered supply; thereby raised turn stimulated plantings. takes plant four bear, maintain level period. operations expectation profitably adjust holdings movement. 21 By 1938 25,000,000 pounds; December, 1941, disposed 8,000,000 withheld controversy Department, May, 1944. then established. pegged—6.75 pound, amended shortly thereafter 6.50 plus carrying charges—approximated came end. responsive unusually country, amounting 78,000,000 100,000,000 pounds, three-year supply. forbade importation high-priced sources cut off Japanese invasion. result, stocks rapidly declined, fall being accelerated imposition desire importers avoid additional charges. September, 1943, 28,000,000 hands importers. Of held, seen, 17,000,000. From middle 1942 activity steadily shrunk early sale. 1944, pepper. rejected offer followed. 23 On 'special fact' deemed right terminated substance included ascertaining inclusion especially appropriate, reasoned, long-term investor. After 1946, 50 60 upward giving award further influenced attributed Commodities—12.7 pound—exceeded ceiling. Taking account, 24 I. Bill Rights 'private (is) use' way attracting far-flung contentions. So here, extreme positions regarding relevance hand urged though represent determined insisted since itself takes, ignored. N Dec. Immigration Nationality Decisions agree understand Court's view rejecting absolutes. 25 drastically change environment justification. terminate distorted equitable'1 voluntary property, irrelevant assessing immutable; immune consequences policies. exercise powers, Congress, enactments diverse ways appreciable loss 'Government hardly go some incident diminished paying every When (the diminution) reaches certain magnitude, eminent domain sustain act. question depends upon facts.' Pennsylvania Coal Mahon, 260 393, 413, 158, 159, 322, 28 American Law 1321. Hudson County Water McCarter, 209 349, 355, 529, 531, 52 828, Ann.Cas. 560; Pipeline Cases (U.S. Ohio Oil Co.), 234 548, 561, 34 956, 958, 58 1459; Jackman Rosenbaum 22, 31, 9, 107. 26 does follow automatically requirements forcible taking simply replaced longer relied reflect play forces. system individual instances requisitioning matter conscientiously competently administered. reach magnitude means burdens, calculus distributed. point ultimate uncompensable. considerations peace, community's burden. requited satisfies prevailing justice. limitation power throughout our history left application. faced problem specified Such statute call usual respect accorded passing validity legislation legislate broad technical nature. relieved chose therefore inescapable explore elements which, transactions, subject control. mechanically 27 us distance wholly accept reject ceilings complications introduced displacement serve intensify wariness undue generalizations specific purposes. Cautious empiricism promising attitude dealing problems sort. hugging closely shore record two issues need faced. arriving (1) (2) 29 II. recognized component opportunity enhanced realization, same boat whom measure. bearing immediate problem, recognition contemporaneous 'divine prophetically' war's end well thereafter. exact gifts mankind possess.' International Harvester America Commonwealth Kentucky, 216, 223, 224, 853, 855, 856, 1284. allow wild imagination practical determination sanction unbridled drafts Treasury. encourage force purchase. That, retention, distant interest protects. 30 diffused profit lot. different incurred holding operations. whereby asked bear share 31 III. compared 6.5 cents. figures. kept records bags each bag recorded invoice Government. Apparently highest greatest charges, 1933—1936. Assuming costs affect accounting system. age value, method computing 'Just function seller's theory accounting. 32 opinion, however, holds Thereby disregards concrete avows abstract—namely, arrived receive consideration. urges peacetime uncontrolled determines Compare equivalent 33 easily reduced quantitative determination, through haggling norm sensibly recognizes reflects men freely it. psychological gone area eliminated. replacement jostling desires buyers sellers edict doubt realization will outsiders distillation directed wills guided self-interest. fixing very exchange. Governmental carries titles courts. carry title self-determination, were, implied Want embrace disregard justice Costs, unlike yield inherently results. Including condemnee 'war profit' inroads safeguard discriminating formula individual. laid down equitable'. relief discretion enforcing vested Administrator authorized him qualify procedure therefrom. schedules include provisions. contained provision. There way, therefore, unfairness affecting business considerations, paid. 35 'Nothing 56 Statutes-at-Large 28, U.S.Appendix, 904(d), U.S.C.A.Appendix, 904(d). protective acquired reasonable loss. today's withdraws statutory protection condemnation. despite 4(d), factors. considerable difference, impersonal workings personal operation domain, officials complete select up good. 36 decide exceeding measured, account. hoarder recklessly event, reimburse him. suddenly shift 'seller' 'holder' 1941; while total essentially on. substantial persons exercised refuse sell, ethically justified incur honest 37 IV. error applying doctrine reversal judgment. reexamine if, theory, prove ceiling, computation 38 JACKSON, dissenting. 39 enacted Act, U.S.C.Appendix, course, surrender want powers Why provision? 40 obvious today—making compulsory separation favor profiteers. 650, 1251, 1614, writing dissent Douglas myself, set forth weighed heavily proponents operate smoothly expeditiously litigation, least adverse decisions. said there: 41 'It hard see legal equal regulating adequately compensatory sense, keep put chooses. If so, task considerably, disastrously, complicated retarded. indispensable itself, long-range success identified property.' page 651, 1251. 42 today nullifies using condemnation compel makes meaningless first compelled, fixed. interstate commerce confined property. hereafter, tested erred making basic making: combining systems—price claimant retain expropriates delay hence He demand, issue time. 44 At expropriation was, insofar concerned, States—controlled doing expropriating. market, recourse earlier imported low figure, ground showed unaccountably spread. valuation one. 45 concur return case redetermination direct used sole See, e.g., Miller, 317 369, 63 276, 87 336, 147 55; Olson 292 246, 54 704, 78 1236. 23, 901 seq., seq. Had compensation,' proper responsibility satisfied Marbury Madison, Cranch 137, 60. Monongahela Navigation 148 312, 327, 622, 463. Eighth Report Director Mobilization Reconversion, October H.R.Doc. 45, 80th Cong., 1st Sess. Page 7. Pertinent parts discussion were: 'We several times plaintiff's disposition Seven-Up Bottling Los Angeles 735, 107 402; Kaiser 69 588, 108 47; Adler Metal Products 71 239, 102; Pantex Pressing Machine 859, 735. 'The undoubted say citizen, you your price; justly compensates owner, pay.' 357, 259—260. petitioned 1943 amend permit allowances expenses. petition denied. Nothing Appeals ever 2(a), 24, 902(a), Code Annotated KF65 U5 Appendix, 902(a).

Classification Label: 3