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IN THE HIGH COURT OF vite
REASONS FOR JUDGMENT.
Delivered at. me wh
40058 A. Porren, Acre Gove. Pum
te
ORIGINAL
E & ORS.
McCARTHY & ORS.
JUDGMENT. WILL:
JUDGMENT.
FRENCH & ORS.
Ve
McCARTHY & ORS.
WILLIAMS J.
The plaintiffs are a number of persons who carry on
the business of milk bar and refreshment room proprietors and
similar businesses in the Sydney metropolitan area, and in the
course of their business sell aerated waters, a variety of drinks
of which milk is an ingredient, and various forms of fruit drinks,
and they have brought this action against the/ Prices Commissioner
(and by amendment against the Prices Commissioner) and the
Commonwealth of Australia, claiming: - 1. A declaration that
Prices Regulation Order No. 1812 is invalid on the ground that
it is not authorised by the National Security (Prices) Regulations.
2. A declaration that if the whole of the said Order is not
invalid clause 7 thereof is invalid. 3. A declaration that if
the Regulations authorise the making of the said Order they are
invalid. 4. An injunction restraining the Defendants and each of
them their servants and agents from enforcing the Order or :
otherwise interfering with the Plaintiffs in the conduct of their
businesses. 5. Damages. The order, which was made by the Acting
Prices Commissioner and gazetted on 13th November 1944, is
intituled "Soft Drinks and Aerated Waters Sydney" y and b>
Al OUT im ARLE My fel CAAT i Beca the validity of
the order on a number of grounds, put before proceeding to
formulate these grounds it will be convenient to deal in the first
instance with the preliminary objections raised by Mr. Sugerman
for the defendants that this Court has no jurisdiction to enter-
tain the action. Mr. Barwick, having been granted leave to amend
the statement of claim to include a claim for an injunction to
restrain the Commissioner exercising his powers under paragraph 7
of the order, submitted that the Court had jurisdiction under
three heads: (1) that the Commonwealth is a party to the action
so that there is jurisdiction under the Constitution, sec. 75(iii).
As /
As the Chief Justice has pointed out in Carter v. Egg & Ege Pulp
Marketing Board (Vic.), 66 C.L.R., 557, at p. 579, the Court has
jurisdiction under this head whenever the Commonwealth sues or
is being sued. I presume that His Honour meant whenever the
Commonwealth is a proper party to the action. Mr. Sugerman did
not apply to have the Commonwealth struck out as a party, but
it was agreed that it would ponventent to leave the question of
jurisdiction until the addresses, so that I shall deal with this
head on the basis that the Court only has jurisdiction because the
Commonwealth is a defendant if it is a proper defendant. (2) That
an injunction is being sought against the Prices Commissioner, who
is an officer of the Commonwealth, so that there is jurisdiction
under the Constitution, sec. 75(v). (3) That the statement of
claim raises the constitutional validity of the Prices
Regulations, so that there is jurisdiction under the Constitution,
sec. 76(1) and the Judiciary Act, sec. 30(a). If the Court has
jurisdiction under the first head it will be unnecessary to
discuss whether it also has jurisdiction under the other heads.
Under the first head two questions arise - (1) whether
the Commonwealth is a proper party to the action; and (2) whether
the action is "a matter" within the meaning of sec. 75 of the
Constitution. As to the first of these questions: In London
Passenger Transport Board v. Moscrop, 1942 A.C., 332, at p. 345,
which was an action for a declaratory order, Viscount Maugham
pointed out that,although absent parties are not strictly bound
by a declaration, the courts have always recognised that persons
interested are or may be indirectly prejudiced by a declaration
made in their absence, so that all persons interested should be
made parties before a declaration,which by its terms affects
their rights ,1§ made. The present order was made by an officer
appointed by the Commonwealth under an authority conferred upon
him by delegated legislation, ahd the order is intended to affect
the sellers and purchasers of soft drinks and aerated waters in
the Sydney metropooitan area,and therefore to affect a large
number of personse In the Victorian Chamber of Manufactures &
ors o/
ors. Vv he Commonwealth & orse, 67 C.L.R., 335, the Prices
Regulations were upheld as a valid exercise of the defence power
on the ground that the control of prices and rates to be charged
for goods and services is necessary in war time to prevent
inflation, so that the Commonwealth has a real and substantial
interest in upholding the validity of orders made by the Prices
Commissioner. It would therefore be prejudiced by a declaration
made in its absence that the order was void. The parties are
similar to those in Vardon v. The Commonwealth, 67 C.L.R., 434,
and King Gee Clothing Pty. Ltd. v. The Commonwealth (not yet
reported) and in my opinion the Commonwealth is a proper party
to the action.
As to the second question: Order IV of the Rules of
Court authorises the Court to make a declaratory judgment or
order in an action properly brought,whether any consequential
relief is or could be claimed or not. In Toowoomba Foundry Pty.
Ltd. v. The Commonwealth, 1945 A.L.R., 282, at p. 289, the
Chief Justice, after referring to a number of cases, said that
it is now too late to contend that a person who is, or in the
immediate future, probably will be affected in his person or
property by Commonwealth legislation alleged to be unconstitution-
al has not a cause of action in this Court for a declaration
that the legislation is invalid. And in recent cases actions
Have been entertained where declarations other than those
relating to the unconstitutionality of Commonwealth legislation
Have been sought or made. For instance, in Wertheim v. The
Commonwealth, 69 C.L.R., 601, the only declaration sought was a
declaration that the Fly and Insect Sprays Order was beyond the
powers conferred upon the Minister by reg. 59 of the National
Security (General) Regulations, and in Shrimpton v. The
Commonmealth, 69 C.L.R., 613, the declaration made related to
certain action taken by the Treasurer of the Commonwealth. The
Commonwealth is usually added as a party and in some instances the
Attorney-General of the Commonwealth as well, whereas in England
the Attorney-General is made a party: Dyson v. Attorney-Generata/
1K.B. /
4.
1 K.B., 410: 1912 1 Ch., 158: Burghes v. Attorney-General, 1912
1 Ch., 173. Mr. Sugerman relied on the statement in In re
Judiciary and Navigation Acts, 29 C.L.R., 257, at pp. 265-6, that
to be a matter there must be some immediate right, duty or
liability to be established by the determination of the Court,
and submitted that in the present action only abstract questions
of law were involved. I am prepared to assume in his favour
that no injunctions could be granted in the action. There is no
evidence that the Commissioner proposes to exercise his powers
under paragraph 7 of the order. There is still less evidence
that he intends to give a notice under that paragraph to any
of the plaintiffs. Further, no injunction could be granted to
restrain the Commissioner enforcing paragraph 8 of the order. He
has no power to enter upon premises and affix price lists. If
paragraph 8 is valid and is disobeyed tradérs render themselves
liable to a prosecution, but no injunction could be granted to
restrain an anticipated prosecution. The action is therefore one
in which no substantive relief could be granted. But it does
raise the immediate question whether the plaintiffs are under a
legal obligation to comply with the order. Traders who disobey
valid orders made by the Commissioner render themselves liable
to serious punishment under the National Security Act,and to even
more serious punishment under the Black Marketing Act, so that
there is nothing abstract about the question. .
Apart from the words "in an action properly brought",
which appear to refer to the limitations upon the original
jurisdiction of the Court, Order IV is in substantially the same
terms as Order 25, Rule 5, of the English Rules. - In the United
States of America the Supreme Court had no jurisdiction to make
declaratory orders until 1934, when the Federal Declaratory
Judgments Act gave the Supreme Court power to make such orders in
cases of actual controversy. The Act is set out in a foot-note
in 300 U.S.R., at p. 236, and several cases of declaratory orders
in the United States of America are collected in Alabama v. McAdory
89 Law. Ed. Adv. Op.,at p. 1276. The practice under this Act
and under the English order appears to be much the sane» Although
it
Se
it is more limited in its terms than the English order or our
Order IV. The plaintiffs are, to apply Lord Wright's words in
woscop's Case (supra), at p. 351, claiming relief and advantage
. for themselves. The present proceedings would constitute a cause
of action under the English order, and I can see no reason why
they should not equally constitute a cause of action under Order
Iv. The position is neatly stated by Peterson J. in Smeeton v.
Attorney-General, 1920 1 Ch., 85, at p. 96 - "The only way of
testing the legality of the Commissioner's requirements was
by an action for a declaration or by defending proceedings for
the enforcement of the penalty". In Whitney v. The Vegetable
Seeds Committee & anor. I expressed my views upon what E
constitutes a matter under sec. 75 of the Constitution at greater
bngth than here, and that judgment can be referred to if necessary.
For these reasons I am of opinion that the Court has
jurisdiction under the first head, so that it is unnecessary to
discuss the other heads.
I shall therefore proceed to the merits, and commence by
priefly summarising the evidence. As the case may go further, I
thought it advisable to admit the whole of the evidence tendered
by the plaintiffs subject to objection.
Evidence was given to prove the general manner in which
the business of selling soft drinks was carried on at the date
of the order. It shows that in the case of drinks of which milk
is an ingredient a customer ordered, for instance, a milk shake.
This drink was prepared by putting the milk and other ingredients
in a metal container capable of holding 30 ozs., and placing the
container on an electrical stirring machine which caused the
contents to become aerated and to rise and increase in volume,
the rise varying according to the age and coldness of the milk.
The drink when stirred usually had a volume of about 20 ozs. A
glass, generally capable of holding 10 ozs., was then filled from
the contained, and the glass and container, the latter still
containing the balance of the drink, handed to the customer. It
was impracticable to mix a drink which would exactly fill any
particular /
6. .
glass. The ingredients added to the milk varied in kind, quantity,
and quality. The flavouring most favoured was vanilla, but many
other varieties of flavouring, and also malt yeast and eggs (up to
three) were also added. Some customers asked for more than one
addition of one or more of these ingredients. Ice cream was an
almost invariable addition. The ice cream was scooped out of a
guart block by a mechanical device which varied in size from 66 to
scoops. The size of the scoops used in different milk bars
varied from 30 to 60 scoops. Customers often asked for a six-penny
ice cream,and sometimes two of these ice creams,to be added to the
milk. There were many special drinks with milk as an ingredient
containing expensive additions.
In the case of fruit drinks the juice employed might be
expressed from fresh fruit or be cordials, and ingredients such as
a 3d. or 6d. ice cream and yeast were often added.
Extra expense was incurred in some milk bars because
tables and chairs were provided, and sometimes service as well.
Extra expense was also incurred in serving soft drinks in the foyers
of theatres, because casual labour had to be engaged, and a large
number of drinks prepared, some of which might not be consumed and
be wasted, in order to serve a large number of customers in a short
space of time. The order prescribes glasses of certain fluid
contents; but breakages and chippings of glasses are heavy,
replacements are difficult to obtain, and traders must take the
glasses that are offered, whatever their fluid content. Evidence
was also given to show the prices charged for soft drinks prior to
the date of the order, and the extra charges that were made where
extra ingredients or extra large drinks were ordered, or drinks were
served at tables or in foyers in theatres. This evidence was
tendered, mot in an attempt to appeal indirectly against the prices
fixed by the Commissioner, but as part of the evidence in support
of Mr. Barwick's second main ground of attack on the validity of
the order, to which I shall shortly refer. There is other evidence
to which I have not referred, but these short extracts will be
sufficient, I think, to illustrate the oso naracterseniee of the
trade. Mr. /
7.
Mr. Sugerman objected to the whole of the evidence on the
ground that it was inadmissible in proceedings to determine the
validity of the order, even if it was admissible in proceedings to
enforce it. But in my opinion no distinction of this kind can
arise from the nature of the proceedings, and its relevancy must
in each case depend upon the nature of the issues.
The grounds upon which Mr. Barwick attacked the validity
of the order may be summarised under two main heads. (1) That
the order is ambiguous and uncertain for two reasons, (i) that it
is couched in ambiguous language; and (ii) that paragraph seven
is not authorised by Prices Regulation 23(1)(b)(i ) and is therefore
"invalid, and this invalidity renders paragraphs 4, 5 and 6 uncertain.
(2) That in relation to the facts that have been proved,(i) the
order is not a price fixing order at all; and (ii) that it involves
such an oppressive and gratuitous interference with the rights of
those who are subject to it that it could find no justification in
the minds of reasonable men.
As to ground (1), under reg. 23 the Commissioner may fix
and declare a maximum price by specifying a sum of money or by
specifying a formla, the application of which to the circumstances
will determine a price. He must also specify the goods for which he
has fixed and declared that price. In Fraser Heflein Pty. Ltd. v.
Cody, 1945 A.L.R., 186, at p. 195, Dixon J. said: "It may be
conceded, and indeed it appears to have been decided, that a bare
power to 'fix'a price cannot be validly exercised without naming a
money sum or prescribing a certain standard by the application of
which it can be calculated or ascertained definitely. Otherwise
the price is not *fixed*." It is equally necessary that the goods
for which the price has been fixed should also be described with
equal definiteness. In some instances the difficulty may be to
determine whether the ingredients in the formula have been described
with sufficient definiteness, for ube, what BR we by the
cost of an eee The eaten instances O7ck8 CLS OPS may be
to determine whether the goods have been described with sufficient
certainty: Fraser Henlein Pty. Ltd. v. Cody (supra) ; in other
instances /
8.
instances the difficulty may be to determine both the price and the
goods: Bendixen v. Coleman, 68 C.1.R., 401. But if the prescription
of the formla for ascertaining the price or the description of the
goods is sufficiently definite, difficulty in ascertaining the facts,
such as a cost sufficiently defined which can only be ascertained from
a certain source: King Gee Clothing Pty. Ltd. v. The Commonwealth
(supra): or whether some goods are substantially identical with
Sup ve
other goods: Fraser Henlein v. Cody, N*RAINR.~pV8E: does not
invalidate the order. And I may add,as appears from Bendixen'g Case,
that a mere difficulty of construction does not make the order
uncertain. Otherwise every order would be invalid where opinions
differed as to its meaning. The order will be valid although a
judge sitting alone may have doubts as to its construction if he is
able, after consideration, to place a definite meaning upon it, or
although in a Full Court the majority may place one and the minority
another construction upon it. The order is only invalidated if, after
applying the ordinary principles of construction, the Court is
finally unable to ascertain from the language of the order the price
which the Commissioner has intended to fix or the goods which he has
intended should be subject to the price. :
In the present case it is contended that there is uncer-
tainty both with respect to prices and goods. Paragraphs 4 and 5
relate to the sale by retail of bottlesof aerated waters in the
Sydney metropolitan area other than for consumption on the seller's
premises, and for consumption on his premises. The goods are clearly
described in the paragraphs, and the prices are clearly fixed in
sums of money for bottles containing defined numbers of fluid ounces,
jin respect of priceses@ goods,
so that these paragraphs are/clear and definite. Paragraph 6 fixes
prices for sales by the glass of aerated waters, fruit drinks and
milk drinks in the Sydney metropolitan area. Sub-paragraph(a)
provides that, when sold by the glass, with or without flavouring
or other ingredients, not being ice cream, the price is that specified
in the Second Schedule. This schedule classifies the drinks under
aerated waters, pure fruit drinks, and milk drinks, and specifies
glasses having a contents of less or of, more than a certain number of.
fluid ounces. Sub-paragraph(b) provides that, where ice cream is
added /
9.
added, whether with or without flavouring or other ingredients, the
price can be increased by id. for each serve of ice cream. It was
contended that this paragraph was uncertain in several respects.
"Milk a@rink" is defined to mean any drink of which milk is an
ingredient, or a drink customarily known or referred to as a milk
arink, but there is no definition of aerated waters or fruit drinks.
But it is clear, I think, that the aerated waters referred to in
this paragraph are the same aerated waters as those described in
paragraphs 4 and 5, that is to say aerated waters contained in
bottles or syphons. The definition of milk drinks was attacked for
uncertainty, but it appears to me to be clear. The first limb is
quite definite as a matter of ordinary language, while the second
limb contains a sufficient definition of what is intended, and its
application would depend upon whether there were in fact at the
date of the order any drinks customarily known and' referred to as
milk drinks by buyers and sellers in the Sydney metropolitan area.
Even if the second limb lacks clarity, the first limb 4s elear, and
the second limb would be severable.
The meaning of "fruit drinks" presents more difficulty.
Paragraph 6 refers to "fruit drinks", while the Second Schedule '
refers to "pure fruit drinks". It is the Second Schedule which
preseribes the prices and describes the goods, so that the only
fruit drinks for which prices are fixed are pure fruit drinks. These
words in their ordinary signification appear to me to refer to
drinks containing fresh fruit juice. Fruit drinks can be made from
such juices or from cordials or from a mixture of both. Paragraph 6
of the order contemplates the addition of other ingredients to the
main ingredient described in the Schedule and shows that, so long
as the drinks contain fresh fruit juice, they are within the Second
Schedule, although they contain flavouring or other ingredients, as,.
for instance, water, cordials, ice cream or yeast. If the drinks do
not contain fresh fruit juice, but only cordial, they are not within
the /
10.
the scope of the order. The omission of drinks containing cordials,
but not fresh fruit juices, from the order seems strange. The
omission may be intentional or unintentional. Probably it is
unintentional. But whether intentional or not, it does not render
the operation of the order uncertain in relation to the drinks to
which it applies. Paragraph 6 only allows an addition to the
price wheré ice cream is added as an ingredient. It then allows
an addition of id. for each serve, so that if the drink contains
as an ingredient any ice cream, 1d. can be added for the first
and every subsequent serve. The ordinary grammatical meaning of
. the word "serve" in the context is, I think, clear. It means the
addition of an indefinite quantity of ice cream to the drink, but,
in any event,the order relates to a particular trade.
The words of an order should prima facie be construed
according to their ordinary natural meaning at the date it came
into force, and where it is of general application oral evidence
is not admissible to assist the Court in determining that meaning,
so that the Court must discover it as best it can.with such aid as
it can derive from the context, dictionary ana other writings, but
where it is of local application or relates to a particular trade,
evidence is admissible, subject to the qualifications stated in
De Begche v. South American Stores Ltd., 1935 A.C., 148, at p. 158,
to prove the local or trade meaning: see the authorities cited in
Vol. 19, A.L.Jd., at p. 132.
The present evidence proves that "serve" has a well
understood meaning between buyers and sellers of ice cream and
refers to a quantity of ice cream added by a mechanical scoop. The
paragraph leaves the amount so added to the discretion of the
seller so long as it amounts to a serve. The order defines "oz."
to mean ounce or fluid ounce, as the case may be, and the glasses
referred to in the Second Schedule are glasses having a capacity
to hold a specified fluid content.
For these reasons there is, in my opinion, no uncertainty
of expression in relation either to price or goods in paragraphs
4, 5 or 6, or in the First or Second Schedules of the ordere
But /
We
But it was contended that paragraph 7 of the order is an
invalid exercise of the powers conferred upon the Prices Commissioner
by reg. 23(1)(b)(i) for two reasons - (1) That the powers conferred
on the Prices Commissioner by reg. 23(1)(a) and 23(1)(b) are
alternative and not cumlative powers, so that, having exercised the
power under reg. 23(1)(a) to fix prices generally for the Sydney
metropolitan area, he cannot fix particular prices for that area. I
cannot agree with this contention. It is obvious that the quality
of specified goods sold by traders may differ. If they differ in
the case of each trader it may be necessary to fix a different price
for each trader. But, while a general price may be sufficient in
most cases, the goods of individual traders may be superior or
inferior in quality to the general quality, or for other reasong it
may be advisable to fix particular prices for particular traders, and
therefore to have at the same time a general and particular price.
(2) That, in order to exercise the power conferred by reg. 23(1)(b) (4),
it is necessary to specify both the goods and the name of the person
in the gazette. This was done in Vardon's case, but has not been done
in paragraph 7. On this point Mr. Sugerman relied on the ruling of
the Supreme Court of New South Wales on a corresponding provision
in reg. 23(2)(b)(i) in relation to rates for services in Ex parte
Byrne: Re King & anor., 45 S.R. (N.S.W.), 123, at p. 126, that the
Commissioner can, by one and the same gazetted order, fix a general
rate, and also make a declaration enabling him to fix special rates.
He submitted that, as this was'a unanimous decision of the Full Court,
and it is usual for five justices of this Court to sit on an appeal
from the Full Court of a State, I ought as a single justice to follow
the decision. I cannot agree with this submission because, although
I should pay the greatest respect to such an authority, I am not bound
by it. It is, however, unnecessary to express any opinion on the
point in order to dispose of this action, because, even assuming that
paragraph 7 is invalid,it is in my opinion severable from the other
paragraphs, and I am quite unable to agree with the contention that
if it is inwalid it renders the whole order uncertain. The
Commissioner has not in fact exercised his powers under paragraph 7,
12.
but the contention was, as I understood it, that if it was uncertain
whether paragraph 7 was invalid, and the Prices Commissioner by
notice in writing fixed a particular price for an individual trader,
it would be uncertain whether he should sell at the general or the
particular price. I should not think that a trader who sold his
goods at a particular price fixed by a notice above the general
price, which was invalid, would run the slightest risk of a
prosecution, but such a consideration could not create a position
,otherwise unobjectionable,
in law where other severable provisions of the order/would be
certain if paragraph 7 was valid, but uncertain if it was invalid or
there was uncertainty as to its validity.
The attack on the validity of the order on the ground of
uncertainty therefore fails.
As to objection (2): there are some statements in the
judgments of this Court to the effect that prices orders are of a
legislative character. But Rich J. in Arnold v. Hunt, 67 C.L.R.,
429, and Dixon J. in King Gee Clothing Pty. Ltd.,have expressed
the opinion that they are of an executive character, and in Vardon v.
he Commonwealth (supra), Arnold _v. Hunt (supra) and Fraser Henlein
Pty. Ltd. vs Cody (supra), I have expressed the same opinion. The
objection as formulated by Mr. Barwick is an objection to the
validity of subordinate legislation, But if the order is executive
the only questions are whether it is an exercise of the powers
conferred upon the Commissioner by the regulations (Here the order,
other than possibly paragraph 7, clearly falls within the four '
corners of the authority conferred upon the Commissioner), and, if
it is, whether he has exercised those powers bona fide: Leversidge
v. Anderson, 1942 A.C., 206: Point of Ayr Collieries Ltd veLloyd
George, 1943 2 A.E.R., 546. An unreasonable exercise is not a
sufficient objection to its validity: The Minister of Agriculture &
Fisheries ve Price, 1941 2 K.B., 116: Hot In_v. Owen, 1943 1 K.B.,
111.
Mr. Barwick contended that, in order to exercise his power
to fix a price, the Commissioner mist ascertain the goods that a
trader is selling and then 'fix a price for those goods or, as he put
it /
13.
it, determine a proper price for the commodities that were in
actual circulation at the date of the order. He referred to
regulations 34, 35 and 36 as contemplating that all these
commodities would continue to be sold. In particular, he relied
on reg. 34(1), which requires a person who has in his custody or
under his control any declared goods for sale in respect of which
a maximum price has been fixed, to sell on demand the quantity
demanded, and om reg, 36(1)(c) and (4), which providefthat a
person shall not, without the written consent of the Commissioner,
alter the formula or recipe ordinarily used by him at the
commencement of the repealed regulations in the manufacture or
production of any declared goods, or manufacture declared goods
inferior in quality to the quality manufactured by him immediately
prior to the date of fixation. But the regulations do not compel
any person to manufacture any declared goods - they only apply if
he has declared goods in his possession or under his control, or if
he manufactures declared goods. A person who sells soft drinks is
not compelled to manufacture any particular milk shakes or fruit
drinks. He is only compelled to serve a customer with such drinks
as he has for sale or, in other words, chooses to manufacture.
The fact that a seller has, at the request of his customers,
previously to the date of the order, added several ingredients or
one or more ingredients several times to milk or fruit drinks,
would not compel him, after the date of the order, to continue to
do so. The order does not provide for the addition of more than
one ingredient to 'the principal ingredient, except in the case of
ice cream. Such drinks were being sold in 1944. Provided the
seller added one ingredient to the principal ingredient, and that
ingredient was of the same quality as before the order, he would
comply with the regulations. There is nothing in the order that
prevents a trader in soft drinks selling milk or pure fruit
drinks and adding any number of ingredients. The Commissioner may
have taken the view that, since the order fixes prices for the sale
of these drinks by the glass, the glass would only hold a certain
quantity of liquid, so that the price fixed was a fair price for
a/
L
14.
a glass-full of the principal ingredientg and any additions other
than ice cream. On the evidence there appears to be substance
in the view that the Commissioner ought to have allowed an extra
eharge for the addition of more than one ingredient to the main
ingredient and, in certain circumstances, for extra expenses. But
the evidence at most proves that the Commissioner may in some
respects have acted unreasonably. There is no evidence that he
has been swayed by irrelevant or improper motives, or that he
fas acted otherwise than honestly and bona fide. The evidence is
that it was the introduction of the container that first made milk
drinks popular, because customers thought that they were getting
a bargain when the drink was poured into a glass and there was still
the. contents of another glass left for them in the container. But
drinks prepared in a container are not in my opinion subject to
the order. It is the drink in the container whieh be Sobe7and the
true character of the contract is not altered because he is also
supplied with a glass. Alternatively, even if the quantity poured
into the glass is subject to the order, and the customer also takes
delivery of what is left in the container, he can be charged an
additional price for what is left in the container. It would also
appear from the evidence that some of the prices for fruit drinks,
as,for instance,where a glass-full of juice is supplied, are
unreasonably low, but the Court, as I have said, cannot act
directly or indirectly as a Court of Appeal against the prices
that have been fixed. Some evidence was given about ice cream sodas,
put it is unnecessary to refer to thes evidence, because these
drinks do not contain milk, and, although they contain soda taken
from a fountain, they are not on this account included in the order,
because the aerated waters referred to in the order are waters con~
tained in bottles and syphons.
Paragraph 7 was, I presume, inserted in the order to
enable the Commissioner to fix special prices where the general
prices were Meteo I cannot refrain from suggesting that if
the Commissioner wishes to exercise this power he would be on safer
ground if he followed Vardon's Case and gazetted the name of the
person before giving him a notice.
For /
Finally, I think that I should add that, even if I am
wrong in holding that the order is executive, and it should be
regarded as subordinate legislation, it would not (with the possible
exception of paragraph 7) exceed the powers conferred upon the
Commissioner by the regulations, and its terms would not be such
an oppressive and gratuitous interference with the rights of those
who are subject to it as could find no justification in the minds
of reasonable men, so as to be unreasonable within the meaning of
the cases, many of which are cited in The Mayor etc. of Brunswick v.
Stewart, 65 C.L.R., 88; The Mayor etc. of Footscray v. Maize
Products Pty. Ltd., 67 C.L.R., 301.
For these reasons I am of the opinion that the action
fails and should be dismissed, and I therefore give judgment
for the defendants with costs.