Stegall v. Thurman

• Decision Date: 27 January 1910
• Parties: STEGALL v. THURMAN, Sheriff and Jailer.
• Court: U.S. District Court — Northern District of Georgia

175 F. 813

STEGALL v. THURMAN, Sheriff and Jailer.

United States District Court, N.D. Georgia.

January 27, 1910

F. C Tate, U.S. Atty., and Jno. W. Henley, Asst. U.S. Atty.

John C Hart, R. R. Arnold, and T. C. Milner, Sol. Gen., for defendant.

NEWMAN District Judge.

Application was made by Charles E. Stegall, in this court, for the issuance of a writ of habeas corpus to be directed to R. W Thurman, sheriff and jailer of Dade county, Ga. The petition of Charles E. Stegall alleges: That he was a storekeeper and gauger, assigned for duty at Distillery No. 3, of George W Cureton, at Rising Fawn, in Dade county, Ga. That he was subpoenaed to appear as a witness before the grand jury of the superior court of Dade county to testify on behalf of the state touching the operations of said distillery. That he declined to answer certain questions propounded to him, upon the ground that all the knowledge he had as to the operation of Cureton's distillery, was obtained and came to him from the records of the Internal Revenue Department, or was obtained by him solely and only in his official capacity as storekeeper and gauger. Thereupon, and on account of his declining to answer, he was committed for contempt, and was in jail when the writ was issued. Return was made, the body of the petitioner produced, and an answer filed by the sheriff.

Upon the hearing, an agreement was made by counsel as to some of the facts, and brief testimony taken as to others. It is agreed now that the question put to Stegall before the grand jury, and on which the present decision turns, was this: Referring to George W. Cureton's distillery, 'What is being manufactured at that place?' and the inquiry is whether, under the facts, Stegall should have been required to answer that question, or whether, in refusing to answer, he exercised a right under the laws of the United States, and the rules and regulations of the Treasury Department, which right would authorize his discharge under this habeas corpus proceeding.

The following testimony of Stegall will show his connection with the distillery, and the character of his knowledge of what was being done there:

'Q. When did you go to this distillery as storekeeper and gauger? A. I have had three assignments there.

'Q. When was the first one? A. The first one was in July of last year; that is my recollection.

'Q. How long did you stay there then? A. Till the 1st day of November of the same year.

'Q. When was your next assignment? A. The 1st day of March, this year.

'Q. How long did you stay there at that time? A. Till the 18th day of March.

'Q. From the 1st of March till the 17th? A. Yes, sir.

'Q. Now, this last time? A. The 18th day of May, this year.

'Q. And you stayed there until this transpired? A. Yes, sir.

'Q. I want to know if you had occasion to visit that distillery, or know anything about it, and in what respect do you know what was around there, and what was being done there? A. I know nothing except what knowledge was gained as an officer.

'Q. Were you ever there in that distillery? A. Except as an officer?

'Q. Yes. A. No, sir; I never was.

'Q. You were never there between any of these visits? A. No, sir.

'Q. When assigned, did you go directly there and relieve somebody else?

A. Yes, sir; when I was assigned I went to relieve another man.

'Q. And you stayed there until you were relieved by somebody? A. Yes, sir.

'Q. And what you know about it is during periods when you were there as storekeeper and gauger? A. Yes, sir.

'Q. Were you there in that capacity all three times? A. Yes, I was there as storekeeper and gauger.

'Q. All three times as storekeeper and gauger? A. Yes, sir.'

He then answered two other questions by the district attorney, as follows:

'Q. Have you any personal knowledge relative to the operations of Cureton's distillery in Dade county, or the products manufactured there, except such knowledge as you obtained in your official capacity as storekeeper and gauger, while in the discharge of your official duties? A. I have no other knowledge except official knowledge.

'Q. Have you any personal knowledge relative to the matters about which you were interrogated and refused to answer before the grand jury in Dade county, recently, except such knowledge as you obtained in your official capacity as storekeeper and gauger at that distillery, while in the discharge of your official duties? A. I did not have any other knowledge except official knowledge.'

It is not denied, as I understand it, that the only knowledge Stegall had of what was being done at Cureton's distillery was knowledge which he obtained while there in his official capacity as storekeeper and gauger, and it is not claimed that Stegall had any knowledge except such as he obtained while there officially. The contention on behalf of the sheriff is, notwithstanding the fact that Stegall was at the distillery only in his official capacity, that he had personal knowledge, knowledge as an individual, of what was being done at the distillery; that is to say, the contention is he saw as an individual, notwithstanding his presence as an official. Is this contention sound? That is the question for determination here.

Section 3167, Rev. St. U.S. (U.S. Comp. St. 1901, p. 2058), is as follows:

'That it shall be unlawful for any collector, deputy collector, agent, clerk, or other officer or employe of the United States, to divulge or to make known in any manner whatever not provided by law to any person the operations, style of work or apparatus of any manufacturer or producer visited by him in this discharge of his official duties, or the amount or source of income, profits, losses, expenditures, or any particulars thereof, set forth or disclosed in any income return by any person or corporation, or to permit any income return or copy thereof or any book containing any abstract or particulars thereof, to be seen or examined by any person except as provided by law; and it shall be unlawful for any person to print or to publish in any manner whatever not provided by law, any income return or any part thereof of the amount or source of income, profits, losses, or expenditures appearing in any income return; and any offense against the foregoing provision shall be a misdemeanor and be punished by a fine not exceeding $1,000.00 or by imprisonment not exceeding one year, or both, at the discretion of the court; and if the offender be an officer or employe of the United States, he shall be dismissed from office and be incapable thereafter of holding any office under the government.'

In addition to this statute, certain rules and regulations have been promulgated by the Treasury Department. These rules and regulations have been made pursuant to the statutes. The following statutes of the United States are pertinent to this question, as follows:

Rev. St. U.S. Sec. 161 (U.S. Comp. St. 1901, p. 80): 'The head of each department is authorized to prescribe regulations, not inconsistent with law, for the government of his department, the conduct of its officers and clerks, the distribution and performance of its business, and the custody, use, and preservation of the records, papers and property appertaining to it.'

Rev. St. U.S. Sec. 251 (U.S. Comp. St. 1901, p. 138): 'The Secretary of the Treasury shall make and issue from time to time, such instructions and regulations to the several collectors, receivers, depositaries, officers, and others who may receive treasury notes, United States notes or other securities of the United States, or who may be in any way engaged or employed in the preparation and issue of the same, as he shall deem best calculated to promote the public convenience and security, and to protect the United States, as well as individuals, from fraud or loss; he shall prescribe forms of entries, oaths, bonds, and other papers, and rules and regulations, not inconsistent with law, to be used under and in the execution and enforcement of the various provisions of law relating to raising revenue from imports, or to duties on imports, or to warehousing; he shall give such directions to collectors and prescribe such rules and forms to be observed by them as may be necessary for the proper execution of the law; he shall also prescribe the forms of the annual statements to be submitted to Congress by him showing the actual state of commerce and navigation between the state and foreign countries; or otherwise between the collection districts of the United States, in each year.'

Rev. St. U.S. Sec. 3215 (U.S. Comp. St. 1901, p. 2084): 'It shall be the duty of the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to establish such regulations not inconsistent with law, for the observance of revenue officers, district attorneys, and marshals, respecting suits arising under the internal revenue laws in which the United States is a party, as may be deemed necessary for the just responsibility of those officers and the prompt collection of all revenues and debts due and accruing to the United States under such laws.'

In pursuance of the foregoing statutes of the United States, rules and regulations were issued by the Treasury Department, as follows:

'Treasury Department, Office of Commissioner of Internal Revenue.

'Washington, D.C., April 15, 1898.

'The following regulations are issued as supplementary to the instructions and suggestions contained on pages 41 and 42 of the Regulations, series 7, No. 12, Revised, August 3rd, 1896:

'All records in the offices of collectors of internal revenue or of any of their deputies are in their custody and control for purposes relating to the collection of the revenues of the United States only. They

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