![]() He admitted that he knew Lipson had an unusual quantity of candy, particularly Life Savers, but stated that he made no inquiry as to where Lipson had secured the candy. He testified that he was a bona fide purchaser for value without notice that the government had sold the candies as animal food only. Walters, a candy wholesaler and jobber, purchased from Lipson about $17,000 worth of candy, including the candies here involved. ![]() Through its agent, Harry Lipson, a large portion of the candies purchased from the government were sold, in direct violation of contract warranties, for human consumption in the regular channels of trade at prices equal to or in excess of the regular wholesale price. ![]() The S & L Sales Company decided to capitalize on this condition. At that time-the fall of 1946-there was a shortage of candy in the civilian market, the manufacturers being compelled to pro rate the available supply among their customers. The company, in direct violation of its contract, removed the candies from the Army base without soaking them in fish oil, and stored them in a basement of an apartment house. The S & L Sales Company, a firm engaged in the salvage business in San Francisco, purchased from the Army a large quantity of these candies, including the candies here involved, subject to the above contract provisions, and at a price that was only a small fraction of the regular wholesale price. The contract contained a further provision that the candies, before they were removed from the Army base, should be denatured with fish oil under the supervision of Army officials. In due course, the Army offered the candies for sale for animal consumption, the invitation to bid and the contract signed by the purchaser expressly stating that the candies were unfit for human consumption, and that the purchaser warranted that they would be used only as animal food. At Camp Knight, in Oakland, a duly authorized Army official inspected the cargo and duly certified that, in his opinion, the candies were "unfit for human consumption because of decomposition, deterioration and weevil infestation." The officer also certified that the candies were fit for animal consumption and recommended that they be disposed of for that purpose. In that month a large quantity of candy and cookies were reshipped to the United States, part being the candies here in question. They were shipped to the South Pacific where they remained until May of 1946, subject to transportation and storage in a tropical climate. The candies in question were manufactured in 1943, and sold to agencies of the United States for the use of military personnel overseas. From this portion of the decree the state appeals on a full transcript. The trial court also found that the Pep-O-Mint and Wint-O-Green Life Savers were neither adulterated nor misbranded, and ordered them returned to the claimant. From this portion of the decree the claimant appeals on the judgment roll alone. The trial court found that the Five Flavors Life Savers, the Necco Wafers, and the Collins Walnettos were adulterated and misbranded, and ordered them destroyed. The claimant, by answer, denied that the other candies were either adulterated or misbranded. After the seizure, by stipulation, the chocolate bars were destroyed, the claimant conceding that they were unfit for human consumption. Originally included within the amended libel were 748 cases of Pep-O-Mint, Wint-O-Green and Five Flavors Life Savers, 15 boxes of Necco Wafers, 84 boxes of Collins Walnettos and 593 boxes of chocolate bars. Walters, on the grounds that these candies are adulterated and misbranded. Moore for Claimant and Appellant.īy this proceeding the state seeks to condemn certain candies owned by the claimant, Henry G. Albert Hutchinson, Deputy Attorney General, for Plaintiff and Appellant.ĭouglas M. 748 CASES OF LIFE SAVER CANDY DROPS et al., Defendants HENRY G.
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