332 U.S. 539 (1947), 54, Blumenthal v. United States

Docket Nº:No. 54
Citation:332 U.S. 539, 68 S.Ct. 248, 92 L.Ed. 154
Party Name:Blumenthal v. United States
Case Date:December 22, 1947
Court:United States Supreme Court
 
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Page 539

332 U.S. 539 (1947)

68 S.Ct. 248, 92 L.Ed. 154

Blumenthal

v.

United States

No. 54

United States Supreme Court

Dec. 22, 1947

Argued October 23, 1947

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE NINTH CIRCUIT

Syllabus

The four petitioners and another defendant were tried jointly and convicted for violating § 37 of the Criminal Code by conspiring to sell whiskey at prices above the ceiling set by the Office of Price Administration. Two of the defendants were the owner and sales manager, respectively, of a business holding a wholesale liquor license which was the ostensible owner of the whiskey; but they were proven, solely by their own admissions, which were received in evidence as to them alone, to have known that the concern was acting as intermediary for an undisclosed owner. The other

Page 540

three defendants were salesmen who made the sales and collected the proceeds, and they were not proven to have known that the business was not the actual owner.

Held:

1. Under the trial court's rulings on admissibility and instructions that the jury must determine the guilt or innocence of each defendant separately and must not take into consideration the admissions of the owner and sales manager in determining the guilt of the salesmen, the admissions were adequately excluded from consideration on the question of the salesmen's guilt. Pp. 550-553, 559-560.

2. With the admissions of the owner and sales manager thus excluded, the evidence summarized in the opinion was sufficient to show that the five defendants joined in a single conspiracy to sell the whiskey at over-ceiling prices in the guise of legal sales. Pp. 542-545, 553-556.

3. Although, in a hypertechnical aspect, the case might be regarded as showing two agreements, one among the owner of the business, the sales manager, and the undisclosed owner of the whiskey, and the other among the five defendants, the unique facts of this case revealed a single over-all conspiracy of which both agreements were essential and integral steps. Pp. 553-559.

4. Kotteakos v. United States, 328 U.S. 750, distinguished. Pp. 558-559.

5. The reception in evidence of the admissions made by the owner and the sales manager, under the trial court's careful instructions that the jury must determine the guilt or innocence of each defendant separately and must not take those admissions into consideration in determining the guilt of the salesmen, was not prejudicial error as to the latter. Pp. 550-553, 559-560.

6. A conspiracy to violate the Emergency Price Control Act, coupled with an overt act in furtherance thereof, is punishable under § 37 of the Criminal Code. P. 560, n. 18.

158 F.2d 883 affirmed.

Petitioners were convicted under § 37 of the Criminal Code for conspiring to violate the Emergency Price Control Act. The Circuit Court of Appeals affirmed, 158 F.2d 883, and denied rehearing, one judge dissenting. 158 F.2d 762. This Court granted certiorari. 331 U.S. 799. Affirmed, p. 560.

Page 541

RUTLEDGE, J., lead opinion

MR. JUSTICE RUTLEDGE delivered the opinion of the Court.

The four petitioners and Abel, another defendant, were convicted of conspiring to sell whiskey at prices above the ceiling set by regulations of the Office of Price Administration, in violation of the Emergency Price Control Act. 50 U.S.C. §§ 902(a), 904(a) and 925(b). The charge was made pursuant to the general conspiracy statute, § 37 of the Criminal Code. The convictions were affirmed by the Circuit Court of Appeals, one judge dissenting. 158 F.2d 883, dissenting opinion at 158 F.2d 762. Abel has not sought review in this Court. Certiorari was granted, 331 U.S. 799, as to the other four defendants because we thought important questions were presented concerning the applicability of our recent decision in Kotteakos v. United States, 328 U.S. 750.

We did not limit our grant of certiorari to that question, however, and on the record it is inseparably connected with the other issues, which relate to the admissibility and sufficiency of the evidence. Accordingly, we have considered all of petitioners' contentions. The competent

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proof was clearly sufficient to show that each petitioner had aided in the whiskey's illegal sale and had conspired with others to do so. The only phase of the case meriting further attention is whether, because of a difference in the state of the proof affecting two groups of defendants, the proof, in variance from the indictment, shows that there was more than one conspiracy.

I

The indictment charges a single conspiracy in a single count. Ten overt acts are specified. The Government alleged and sought to establish that all of the defendants and other unidentified persons conspired together to dispose of two carloads, each consisting of about 2,000 cases, of Old Mr. Boston Rocking Chair Whiskey at over the ceiling wholesale prices.

This whiskey was shipped by rail from the distiller or his agent to the Francisco Distributing Company, in San Francisco, in December, 1943. Goldsmith was the individual and sole owner of that business, and held a wholesale liquor dealer's basic permit, as required by federal law. Weiss, his former partner, was sales manager for the business. Feigenbaum operated the Sunset Drugstore in San Francisco. Blumenthal owned and operated the Sportorium, a sporting goods and pawn shop in the same city. Abel either owned or worked in a jewelry store in Vallejo, California. The evidence does not show that any of these last three was connected with Francisco in any way, except that each had part in arranging sales and deliveries of portions of these two shipments to purchasers. These were tavern owners in San Francisco and near-by towns such as Vallejo, Santa Rosa, Livermore, Cottonwood, and El Cerrito. Proof of the activities of Feigenbaum, Blumenthal, and Abel was made largely by

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the testimony of the various tavernkeepers with whom they respectively dealt.

The evidence showed that, on arrival of the whiskey in San Francisco, legal title was taken in Francisco's name, in which the shipping documents were made out; that it honored sight drafts for both shipments, upon Goldsmith's directions to Francisco's bank to pay them out of Francisco's account; that some of the whiskey was delivered ex car directly to tavernkeepers who previously had arranged for purchases in lots varying from 25 to 200 cases; that [68 S.Ct. 250] the remainder was placed in storage with the San Francisco Warehouse Company, pursuant to arrangements made by Weiss, and thereafter was delivered by the warehouse to various purchasers holding invoices issued by Francisco1 on orders given by Weiss. The ex car deliveries also were made pursuant to similar invoices and orders.

If further appeared that the cost of the whiskey to Francisco was $21.97 a case,2 the wholesale ceiling price was $25.27, and Francisco received, by check of the purchasing tavernkeepers, $24.50 for each case sold. There was thus left to it a margin above cost of $2.53 on each case, out of which were to come storage charges, if any, and legitimate net profit.

Thus far, no illegal act, transaction, intent, or agreement appears. But, by the testimony of purchasing tavernkeepers, the Government proved that, in connection with each sale, the purchaser had paid to the selling intermediary, in addition to the $24.50 per case remitted

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by check to Francisco, an additional sum in cash amounting roughly to from $30 to $40 per case. Thus, the actual cost to the retailer was from $55 to $65 per case.

In some instances, the identity of the person arranging the transaction for the seller and receiving the cash payment was not established or known to the witness testifying to the sale and its details. In others, however, Blumenthal, Feigenbaum, or Abel was identified as the salesman or intermediary. It was not brought out with what person or persons Abel, Feigenbaum, Blumenthal, or the other salesmen dealt in securing the whiskey from Francisco.3 In two sales, Figone, a tavernkeeper of El Cerrito, testified he arranged for the purchases in Francisco's offices, but could not identify the person with whom he dealt.

In all instances, however, whether involving sales to San Francisco or to out-of-town dealers and whether through identified or unidentified selling intermediaries, the sales followed the general pattern described above. That is, once the understanding had been reached, the purchaser made out his check at the price of $24.50 per case, to the order of "Francisco Distributing Co.," at the direction of the selling intermediary, to whom the check was delivered; at the same time or later, the purchaser

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also paid in cash to the intermediary the difference between the amount of the check and the agreed over-ceiling purchase price; then or later, the purchaser received invoices in the name of Francisco for the number of cases of Old Mr. Boston Rocking Chair Whiskey bought showing only the legal price of $24.50 per case, and thereafter the purchaser received delivery of the whiskey from the warehouse company, by freight in the case of out-of-town buyers. Weiss gave the warehouse company instructions for shipments or local deliveries. Francisco collected the checks by endorsing and sending them through its bank for collection. Slight variations in detail of the pattern appear in some instances, but they are insignificant for our purposes.

The foregoing is substantially the evidence used not only in part to show the conspiracy, but also to connect Blumenthal, Feigenbaum, and Abel with it. In addition to the evidence already related as it affects [68 S.Ct. 251] Goldsmith and Weiss, the court received as to them alone the testimony of...

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