Katz
Reconstruction Finance Corp. v. Katz
Opinion
Lead Opinion
Orr, J.
Appellee, seeking recovery of an extra compensation provided in the federal meat subsidy plan, brought this action against Defense Supplies Corporation (a federal agency whose stock was wholly owned by Reconstruction Finance Corporation), for extra subsidy payments on beef slaughtered in 1944.
Regulation No. 3 of Defense Supplies Corporation (8 Fed. Register 10826) provided for certain payments to live stock slaughterers, which payments appellee received. Effective November 1, 1943, this Regulation was amended by the addition of section 14 (9 Fed. Register 1820), which provided for extra compensation at the rate of 80 cents per hundredweight of beef slaughtered.
To qualify for this extra compensation it was necessary for appellee to show that he was an “unaffiliated slaughterer of beef”, defined in the section as a “slaughterer who does not own or control a processor or pur *216 veyor of meat”. One who “owns or controls” is further defined as one who has, among other things, made “loans or advances in excess of 5% of the other person’s [that is, the processor or purveyor of meat] monthly sales.” The “unaffiliated slaughterer” must also show that he is a “non-processing”…