United States v. Gilliland, No. 245

• Court: United States Supreme Court
• Writing for the Court: HUGHES
• Citation: 312 U.S. 86,85 L.Ed. 598,61 S.Ct. 518
• Parties: UNITED STATES v. GILLILAND et al
• Docket Number: No. 245
• Decision Date: 03 February 1941

312 U.S. 86 61 S.Ct. 518 85 L.Ed. 598 UNITED STATES

v.

GILLILAND et al.

No. 245. Argued Jan. 10, 1941. Decided Feb. 3, 1941.

Page 87

Messrs. Robert H. Jackson, Atty. Gen., and Herbert Wechsler, of Washington, D.C., for appellant.

Mr. F. W. Fischer, of Tyler, Tex., for appellees.

[Argument of Counsel from pages 87-88 intentionally omitted]

Page 89

Mr. Chief Justice HUGHES delivered the opinion of the Court.

The District Court sustained a demurrer to ten counts of an indictment and the Government appeals. 18 U.S.C. § 682, 18 U.S.C.A. § 682.

There were eleven counts in the indictment, the first of which, a conspiracy count, the District Court found good. The other counts now before us were based on Section 35 of the Criminal Code. 18 U.S.C. § 80, 18 U.S.C.A. § 80. ¹ Eight of these counts charged in substance that defendants had willfully caused to be made and used verified reports falsely and fraudulently stating the amount of petroleum produced from certain oil wells, and the other two counts made a similar charge with respect to verified reports as to the amount of petroleum received from certain producers.

The District Court held that these substantive counts did not state an offense under Section 35 of the Criminal Code as amended by the Act of June 18, 1934. 48 Stat. 996. The court plainly rested its decision upon its construction of the statute and hence direct appeal to this Court is properly brought. We are concerned only with the correctness of this construction and not with the mere interpretation of the indictment as a pleading. United States v. Patten, 226 U.S. 525, 535, 33 S.Ct. 141, 142, 57 L.Ed. 333, 44 L.R.A.,N.S., 325; United States v. Birdsall, 233 U.S. 223, 230, 34 S.Ct. 512, 514, 58 L.Ed. 930; United States v. Kapp, 302 U.S. 214, 217, 58 S.Ct. 182, 184, 82 L.Ed. 205; United States v. Borden Co., 308 U.S. 188, 195, 60 S.Ct. 182, 186, 84 L.Ed. 181.

Section 35, as amended, makes it a crime knowingly and willfully to 'make or cause to be made any false or fraudulent statements or representations', or to 'make or use or cause to be made or used any false bill, receipt,

Page 90

voucher, roll, account, claim, certificate, affidavit, or deposition, knowing the same to contain any fraudulent or fictitious statement of entry in any matter within the jurisdiction of any department or agency of the United States'. The reports containing the alleged false and fraudulent statements in this instance were charged to have related 'to a matter within the jurisdiction of the Department of the Interior, the Secretary of the Interior, and the Federal Tender Board No. 1, Kilgore, Texas'.

By the Act of February 22, 1935, 49 Stat. 30, 31,² the so-called 'Hot Oil' Act, the transportation in interstate commerce from any State of 'contraband oil' produced therein was prohibited, such oil being that 'produced, transported, or withdrawn from storage' in excess of the amounts permitted under the laws of the State or regulations duly made by its agencies. The President was authorized to prescribe regulations for the enforcement of the Act, including the requirement of 'reports, maps, affidavits, and other documents relating to the production, storage, refining, processing, transporting, or handling of petroleum and petroleum products'. Under this authority the President designated the Secretary of the Interior as his agent, and the latter promulgated regulations which the President approved. There was thus set up Federal Tender Board No. 1, to be located at Kilgore, Texas, for the East Texas Field, and monthly reports on forms approved by the Secretary were required to be filed with the Board.³

If the provision of Section 35, under which the indictment is laid, be construed according to its literal and natural import, it is manifest that the statute covers the offenses

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charged in the substantive counts. The affidavits and reports, as described in the indictment, containing statements alleged to be false and fraudulent, were made and used in a matter within the jurisdiction of a department and agency of the United States. Nor can the statute be deemed to be invalid because of indefiniteness. The affidavits and reports required had been sufficiently described and the duty enjoined had been adequately defined. Any one presenting the required affidavits and reports to the Board set up under the pertinent regulations was suitably charged with notice of the consequence of knowingly and willfully including therein any false and fraudulent statements.

Defendant's contention, which the District Court sustained, is that the broad language of the statutory provision here involved should be restricted by construction so as to apply only to matters of a nature similar to those with which other provisions of Section 35 deal, 'such as claims against, rights to, or controversies about funds involved in 'operations of the Government", that is, to matters in which the Government has some financial or proprietary interest. This contention is sought to be supported by the doctrine of ejusdem generis and the construction given to Section 35 prior to the amendment of 1934, and by reference to the incongruity of the penalty prescribed for violation of Section 35 as contrasted with the penalty prescribed by the Act of February 22, 1935, to the enforcement of which the requirements in question were directed. Defendant also presents the contention, upon which the...