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BOWLES v. BAYUK CIGARS

February 23, 1945

BOWLES, Price Administrator, Office of Price Administration,
v.
BAYUK CIGARS, Inc.



The opinion of the court was delivered by: BARD

This is an action for an injunction brought by Chester Bowles, Price Administrator, Office of Price Administration, to restrain violations of Section 4(a) of the Emergency Price Control Act of 1942, as amended 56 Stat. 23, 765; 57 Stat. 566, 50 U.S.C.A.Appendix §§ 901 et seq., Sec. § 961 et seq., and of Maximum Price Regulation No. 494 (9 F.R. 14725) issued under the Act.

Jurisdiction of this action is conferred upon this court by Section 205(c) of the Act, 56 Stat. 33, as amended, 50 U.S.C.A.Appendix § 925(c).

 I make the following special findings of fact:

 1. Defendant Bayuk Cigars, Inc., is a corporation organized and existing by virtue of the laws of the State of Maryland.

 3. Defendant has offices at Ninth Street and Columbia Avenue, Philadelphia, Pennsylvania.

 4. Defendant purchases tobacco from farmers or growers in Lancaster County, Pennsylvania, and for that purpose employs approximately 72 buyers, and maintains and operates approximately 20 warehouses and 5 receiving stations in that county.

 5. Pursuant to the Emergency Price Control Act of 1942, the Price Administrator, on December 16, 1944, issued Revised Maximum Price Regulation No. 494 (9 F.R. 14725) effective that date and has continued in effect at all times since that date except as amended on January 29, effective on January 30, 1945 (10 F.R. 1334). This regulation establishes maximum prices for sales and purchases of domestic cigar filler and binder tobacco, requires the keeping of records, and prohibits evasive practices.

 6. The type of tobacco grown in Lancaster County, Pennsylvania, is referred to in Regulation 474 as Type 41, Pennsylvania seedleaf wrappers and farm fillers, for which the ceiling price is established for growers under the Regulations at 21 and 7 cents per pound respectively plus drayage.

 7. On or about January 31, 1945, and at various times thereafter and until the date hereof, the defendant corporation, in the course of its business, received from divers growers in Lancaster County, Pennsylvania, domestic cigar filler tobacco known as Type 41, Pennsylvania seedleaf tobacco of two grades designated in said Regulation as Wrapper B's Table Sized and Farm Fillers.

 8. That at the time of the delivery of the tobacco by the growers and the receipt thereof by defendant corporation, the defendant corporation made advance payment on account of the purchase price of the tobacco to each of these growers to the extent of approximately 95% of the maximum prices provided by Regulation 494 for sales by growers.

 9. That at no time did the defendant corporation, its officers, servants, agents or employees state or represent to such growers that the monies were merely loaned to them, or that the tobacco delivered was held as collateral security for any loan, or that interest was to be paid on any loan, nor was any mention made of storage charges or insurance charges, or that the tobacco delivered would be custom-packed for the account and risk of the growers and held by defendant pending further instructions.

 10. That the defendant corporation proceeded to pack the tobacco so delivered by the growers upon the receipt thereof.

 11. That defendant tobacco manufacturer evaded and attempted to evade the price limitations provisions of Regulation 494 by receiving and accepting delivery of the tobacco and packing same, and agreeing to pay the growers subsequently as the purchase price thereof, the maximum price provided by the Regulation for packed tobacco, less the cost of packing and less the ...


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