United States v. Braverman

Background

Jerry Braverman, a transportation manager for the Andrew Jergens Company, was indicted in June 1962 for knowingly soliciting rebates from a freight forwarder on interstate motor shipments of his employer’s goods. The indictment did not allege, and the Government did not intend to prove, that any rebate would have benefited the shipper. The district judge dismissed the indictment, concluding the Elkins Act applied only when a shipper received an advantage, and the Government appealed.

Reasoning

The Court asked whether the Elkins Act forbids solicitation of rebates by any person, even if the rebate is not for the shipper’s benefit. Reading the statute’s plain language, the Court explained §1 outlaws any offer, grant, solicitation, acceptance, or receipt of rebates that transport property at rates lower than published tariffs. The Court relied on the law’s text, its history, and prior statements by the Interstate Commerce Commission and Congress showing they meant to stop all departures from published rates. The Court held that “any person” really means any person and that the indictment did state an offense.

Real world impact

The decision makes clear that employees, company agents, and third parties who ask for secret rebates on interstate shipments can be criminally charged even if the shipper does not benefit. It reinforces enforcement of published tariff rates and removes a legal gap the lower court had relied on. The case was reversed and sent back to the lower court for further proceedings.