159 F.2d 716 (Fed. Cir. 1947), 335, Somerville Dressed Meat Co. v. R.F.C.

Docket Nº:335.
Citation:159 F.2d 716
Party Name:SOMERVILLE DRESSED MEAT CO. v. RECONSTRUCTION FINANCE CORPORATION.
Case Date:February 05, 1947
Court:United States Courts of Appeals, Court of Appeals for the Federal Circuit
 
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Page 716

159 F.2d 716 (Fed. Cir. 1947)

SOMERVILLE DRESSED MEAT CO.

v.

RECONSTRUCTION FINANCE CORPORATION.

No. 335.

United States Emergency Court of Appeals.

February 5, 1947

Heard at Boston Jan. 13, 1947.

Joseph Kruger, of Boston, Mass. (Martin Ritvo, of Cambridge, Mass., and Widett & Kruger, of Boston, Mass., on the brief), for complainant.

John C. Erickson, of Washington, D.C., (John D. Goodloe, George B. Stoner, and James L. Dougherty, all of Washington, D.C., on the brief), for respondent.

Before MARIS, Chief Judge, and MAGRUDER and McALLISTER, Judges.

MAGRUDER, Judge.

This complaint challenges the validity of a provision of Amendment No. 2 (9 F.R. 1820) to Regulation No. 3 (8 F.R. 10826) issued by the Defense Supplies Corporation, under which provision respondent has ruled that Somerville Dressed Meat Company, complainant, was ineligible, during the period November 1, 1943, to January 17, 1944, to receive the special subsidy of 80 cents per cwt. payable to nonprocessing slaughterers of cattle. 1

Amendment No. 2 established a special subsidy to non-processing slaughterers pursuant to a Directive of the Economic Stabilization Director issued October 25, 1943 (8 F.R. 14641), and attached certain conditions to the payment of such subsidy. To be eligible for the special subsidy, a non-processing slaughterer, as defined, must be an 'unaffiliated slaughterer,' that is, it must not 'own or control,' or be 'owned or controlled by,' a 'processor or purveyor of meat.' The Phrase 'own or control' is defined as meaning 'to own or control directly or indirectly a partnership equity or in excess of ten percent of any class of outstanding stock or have made loans or advances in excess of five per cent of the other person's monthly sales.'

Somerville Dressed Meat Company, a Massachusetts corporation, was organized in April, 1941. It then issued 300 shares of common stock without par value and 200 shares of non-voting preferred stock. From the outset, and at all times thereafter, one Frank Brezniak has held 100 shares of the common stock and 150 shares of the preferred. In July, 1943, Brezniak together with one Henry A. Waddell, opened a retail meat stand in Faneuil Hall market, in Boston, Mass., as co-partners, under the name of H. A. Waddell Company.

By letter to complainant dated January 17, 1944, Defense Supplies Corporation ruled that...

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