Lynch v. Tilden Produce Co., 265 U.S. 315 (1924)

Lynch v. Tilden Produce Company

No. 139

Argued January 25, 1924
Decided May 26, 1924
265 U.S. 315

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE EIGHTH CIRCUIT

Syllabus

1. The Act of May 9, 1902, c. 784, § 4, 32 Stat. 193, defines adulterated butter, in part, as

any butter in the manufacture or manipulation of which any process or material is used with intent or effect of causing the absorption of abnormal quantities of water, milk, or cream.

Held:

(a) That the mere fact that butter contains 16% or more of moisture does not bring it within the statutory definition. P. 320.

(b) A regulation made by the Commissioner of Internal Revenue and approved by the Secretary of the Treasury declaring that any butter having 16% or more of moisture is adulterated conflicts with the above statutory definition, and is void. Id.

2. Section 20 of the Act of August 21886 c. 840, 24 Stat. 212, which empowered the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to make all needful rules and regulations for the carrying of that act into effect, was made applicable, by the above Act of 1902, to manufacturers of "adulterated butter," only in respect of the marking, branding, identification, and regulation of exportation and importation. P. 321.

3. Rev.Stats., § 251, authorizing the Secretary of the Treasury to prescribe rules and regulations not inconsistent with law to be used under and in the execution and enforcement of the internal revenue laws, does not sustain a regulation defining "adulterated butter" which eliminates conditions, words, and phrases contained in the statutory definition, and substitutes others. P. 321.

282 F. 54 affirmed.

Certiorari to a judgment of the circuit court of appeals affirming a judgment of the district court for the present respondent in its action to recover an amount it was compelled to pay the Collector as stamp taxes, on butter seized by the Commissioner of Internal Revenue.