Bartlett v. United States

• Decision Date: 06 March 1948
• Docket Number: No. 3550,3551.,3550
• Citation: 166 F.2d 928
• Parties: BARTLETT et al. v. UNITED STATES.
• Court: U.S. Court of Appeals — Tenth Circuit

166 F.2d 928 (1948)

BARTLETT et al. v. UNITED STATES.

Nos. 3550, 3551.

Circuit Court of Appeals, Tenth Circuit.

March 6, 1948.

H. A. Kiker, of Santa Fe, N. M. (Chas. C. Spann, of Santa Fe, N. M., and Theodore S. Johnson, of Hobbs, N. M., on the brief), for appellants.

Everett M. Grantham, U. S. Atty., of Santa Fe, N.M. (Maurice Sanchez, Asst. U. S. Atty., of Albuquerque, N. M., on the brief), for appellee.

Before PHILLIPS, BRATTON, and HUXMAN, Circuit Judges.

PHILLIPS, Circuit Judge.

Bartlett, Edwards, Walker-Smith Company,¹ and Kee were charged by indictment with a violation of 18 U.S.C.A. § 88. Five other individuals were also charged as codefendants but the indictment was dismissed as to them and the Company.

The indictment charged that the defendants conspired to violate laws of the United States respecting the rationing of sugar and the control of sugar prices; that the conspiracy was to be carried out in substantially the following manner: That Bartlett, with the consent of the Company and Kee, its manager at Hobbs, New Mexico, would issue his check for 60,000 pounds of sugar credits, drawn on Bartlett's sugar ration account in the Lea County State Bank² at Hobbs, New Mexico, payable to the Company; that such check would be accepted by Kee and deposited to the sugar ration account of the Company in the Bank without the delivery at the time of such transaction of any sugar to Bartlett; that Bartlett, with the consent of the Company and Kee, would agree and arrange with Edwards, the ration bank teller at the Bank, to accept from Bartlett a fictitious deposit slip, not supported by valid sugar ration evidence, calling for the deposit of 200,000 pounds of sugar ration credits to the account of the Company in such Bank; that Edwards would place a fictitious credit of 200,000 pounds of sugar ration evidence to the account of the Company in the Bank; that E. L. Randolph, J. W. Beasley, J. L. Thomas, J. R. Tate, and J. W. Winslow would pay to Bartlett certain sums of money; that Bartlett would then communicate with the Company and Kee and instruct them to deliver to the person so paying such moneys to Bartlett, amounts of sugar, and to collect from such persons the ceiling price for such sugar on delivery; and that the Company would charge such deliveries of sugar to its sugar ration credits in the Bank created, as above stated, and that such transactions would all be carried out without the surrender of any valid sugar ration evidence when such sugar was sold and delivered.

It further alleged 13 overt acts performed in furtherance of such conspiracy.

The evidence introduced by the United States established these facts:

Bartlett was the owner of a bottling plant at Hobbs, New Mexico, was engaged in the bottling and distribution of a beverage, known as Doctor Pepper, and was an industrial user of sugar. He filed a registration as an industrial user of sugar for the year 1945 and was allotted 25,475 pounds of sugar, payable in quarterly allotment checks. Four checks were issued to Bartlett for such sugar allotment. An industrial user of sugar was not entitled to receive sugar ration evidence in any manner other than through quarterly allotment checks. During the year 1945, a ration banking plan, which had been set up by appropriate regulations of the Office of Price Administration, was in operation, and sugar ration credits were handled by designated banks in much the same manner as ordinary bank deposits. Under the plan, an industrial user of sugar would deposit his sugar ration evidence in a designated bank and would be given credit therefor and would draw sugar checks against his sugar credits in the bank. During the year 1945, the Bank was a designated depository of sugar ration evidence. Edwards was the ration bank teller for such Bank for approximately one year prior to December 16, 1945. Bartlett drew two checks payable to the Company, one dated September 4, 1945, for 20,000 pounds of sugar, and one dated December 6, 1945, for 60,000 pounds of sugar. The check for 20,000 pounds of sugar was endorsed by the Company and was paid September 18, 1945. The check for 60,000 pounds of sugar was endorsed by the Company, was paid December 11, 1945, and the ledger account of the Company shows a deposit to its credit on December 11, 1945, of 66,350 pounds of sugar evidence. Bartlett prepared a deposit slip, dated December 13, 1945, covering 200,000 pounds of sugar ration credits, purportedly supported by sugar stamps, for deposit to the account of the Company. The slip was initialed by Edwards. On December 13, 1945, the ledger account of the Company in the Bank was credited with 200,000 pounds of sugar ration evidence.

On December 13, 1945, Bartlett gave Kee the duplicate deposit slip for 200,000 pounds of sugar ration evidence and told Kee that he had deposited that amount of credit to the Company on that date.

Combs, a witness for the United States, testified that he was employed by the Bank during 1945; that he became ration clerk on December 15, 1945; that about December 13, 1945, Edwards asked him if he wanted to make some money, and, upon inquiry as to how it could be done, Edwards stated that she had been transacting business with Bartlett by accepting deposits purporting to be supported by sugar stamps, but that there were no stamps; that she had made over $700 in one month; that Bartlett would enclose currency in the envelopes purporting to contain the sugar ration stamps and that she took the money from the envelopes; that no sugar ration evidence would, in fact, be deposited in support of such credits; that he told Edwards he did not want to get mixed up in any trouble; that about a day later, Edwards asked him if he had changed his mind about transacting business with Bartlett, and that he replied in the negative; that two or three weeks later, Bartlett approached him in the Bank and asked him if he had changed his mind about Edwards's proposition and if he would help Bartlett out; that he answered in the negative; that Bartlett approached him on three subsequent occasions; that they were about three weeks apart and took place when Bartlett came to the Bank for his ration statements; that on each occasion, Bartlett asked Combs if he had changed his mind and if he would transact business with Bartlett.

Moffett, an Enforcement Attorney for the Sugar Rationing Division of the Denver Office of Price Administration, and Charles Hopkins, Investigator for the Office of Price Administration, interviewed Bartlett with respect to his sugar account on January 11, 1947, at Hobbs, New Mexico. After some delay, in compliance with their request, Bartlett produced his ration bank statements, deposit slips, and canceled bank checks drawn on his sugar account. Upon being interrogated about the unusually large amount of stamps, Bartlett stated that in 1943, he imported 14 carloads of syrup, containing from 85 to 125 barrels per car, which was ration free at the time;...