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University of Michigan Law School

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Corporations-Dividends On Non-Cumulative Preferred Stock Jun 1931

Corporations-Dividends On Non-Cumulative Preferred Stock

Michigan Law Review

Plaintiff held non-cumulative preferred stock in the defendant corporation. From 1925 through 1928 no dividends were declared upon this stock; although earnings were sufficient they were used instead for property improvements. Since 1928, dividends have been paid regularly on this stock at the specified rate. In 1930 a dividend was declared on the common stock. Plaintiff sued to have this amount paid instead as a dividend on the preferred stock, and to enjoin any payment of dividends on the common stock until full dividends were paid on the non-cumulative preferred stock for the period from 1925 to 1928. Held, …

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State Utilities And The Supreme Court, 1922-1930, Thomas Reed Powell Jun 1931

State Utilities And The Supreme Court, 1922-1930, Thomas Reed Powell

Michigan Law Review

While enterprises that are "affected with a public interest" or "devoted to a public use" or that come within the class of strict public utilities may be compelled to do a number of things that strictly private enterprise may avoid, the power over utilities is not unlimited. Requirements deemed onerous may be contested as denials of due process of law. The constitutional issue thus raised under the Fourteenth Amendment entitles protestants to start injunction proceedings in federal courts and to seek appeals to the United States Supreme Court from unfavorable decisions of state courts. Often the complaint is not of …

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Wills-Restoration Or Revival Of A Will Upon The Revocation Of A Subsequent Instrument Revoking The Prior Will Jun 1931

Wills-Restoration Or Revival Of A Will Upon The Revocation Of A Subsequent Instrument Revoking The Prior Will

Michigan Law Review

A recent Pennsylvania case, In re Ford's Estate, is an interesting example of a situation which has left the courts in decided conflict. The decedent had properly executed two wills. On his death bed he caused the later will, which contained the usual clause expressly revoking all prior instruments, to be torn. At the time he stated that he wished his son, his only heir at law and next kin, to have all his property. The evidence indicated that the decedent had entirely forgotten the existence of the prior will. The court, relying upon the expression of the decedent's …

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The Business Trust As A Means Of Securing Limited Liability Jun 1931

The Business Trust As A Means Of Securing Limited Liability

Michigan Law Review

Small investors are unwilling to risk their entire personal fortunes in one business venture, and for this reason refuse to participate in an enterprise unless they are assured that they will be free from individual liability for the obligations of the business. Such freedom from liability may be obtained by incorporation. That is the method especially provided by law and the one which most businesses adopt, but it has its disadvantages. The organization of a corporation involves heavy expenses in the form of lawyers' fees, filing fees and organization taxes. Once formed the corporation is subject to many. special taxes, …

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Administrative Tribunals-Right To Federal Injunction Against Administrative Orders Jun 1931

Administrative Tribunals-Right To Federal Injunction Against Administrative Orders

Michigan Law Review

The public utility commission of Ohio refused to permit the plaintiff motor bus company to operate over a portion of the route for which application was made for a certificate. The plaintiff applied to the federal district court for an injunction against enforcement of the commission's order on the ground that it amounted to a deprivation of property without due process. A temporary injunction was granted. Thereafter, the plaintiff took a statutory appeal to the state supreme court, which affirmed the order, after which the plaintiff sought a permanent injunction in the federal court. Held, the decision of the …

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Copyrights-Radio Reception As Performance Witein Copyright Act Jun 1931

Copyrights-Radio Reception As Performance Witein Copyright Act

Michigan Law Review

By means of a master receiving set under its operation, and loudspeakers controlled by the guests, installed in its rooms, defendant hotel company made available the hearing of a copyrighted musical composition which had been broadcast. Neither the radio station nor the hotel was authorized to perform it. In a suit against the hotel company for alleged infringement of the copyright, relief was denied on the ground that reception did not constitute a performance within the meaning of the Copyright Act. The case was appealed and that question was certified to the Supreme Court. Held, that reception was essentially …

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Negligence-Attractive Nuisance-Ponds Jun 1931

Negligence-Attractive Nuisance-Ponds

Michigan Law Review

The eleven year old son of the plaintiff was drowned by falling from a raft into a pond located upon the defendant's water-works property immediately adjacent to a public bathing beach. The pond was undeniably attractive to children and was left without guards, notices, or protection, and there was no clear indication where the public beach ended and the city property began. The lower court held that this constituted an attractive nuisance, but it was held on appeal that the doctrine of attractive nuisance does not apply to ponds. Fiel v. City of Racine (Wis. 1930) 233 N.W. 611.

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Torts-Automobiles-Statute Limiting Liability To Gratuitous Passengers Jun 1931

Torts-Automobiles-Statute Limiting Liability To Gratuitous Passengers

Michigan Law Review

In her declaration, plaintiff alleged that while she was riding as a gratuitous passenger in defendant's automobile, she was injured as a consequence of defendant's gross negligence in permitting a person known by him to be incompetent to drive the automobile; that by reason of the incompetence of the driver, the car went into a ditch, causing the injury complained of. The defendant moved to dismiss the declaration on the ground that it did not charge actionable gross negligence and that the defendant was not liable for mere negligence under a Michigan statute. Held, that the declaration should be …

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Book Reviews Jun 1931

Book Reviews

Michigan Law Review

Multiple book reviews by various authors.

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Lay Encroachments On The Legal Profession, E. Smythe Gambrell Jun 1931

Lay Encroachments On The Legal Profession, E. Smythe Gambrell

Michigan Law Review

The holding of the Minnesota supreme court in the Otterness case that: "Neither a corporation nor a layman, not admitted to practise, can practise law, nor indirectly practise law by hiring a licensed attorney to practise law for others for the benefit or profit of such hirer" is one of many recent judicial pronouncements in defense of the legal profession. These decisions may prompt many individuals to ask why there should be a professional monopoly in the practise of law. Governmental restraint against free and unregulated practise of law is not for the purpose of advancing the individual interests of …

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Corporations-Duty Of Corporate Trustee To Record Mortgage Securing Bonds Jun 1931

Corporations-Duty Of Corporate Trustee To Record Mortgage Securing Bonds

Michigan Law Review

Plaintiff became the holder of bonds issued under and secured by a collateral trust agreement executed in Pennsylvania. The mortgage contained the provision that " * * * the trustee, save for its gross negligence or wilful default, shall not be personally liable for any loss or damage" and further that "It shall be no part of the duty of the trustee to record this instrument as a mortgage." The mortgage was not recorded nor the mortgage debt satisfied. Plaintiff sued the trustee in New York for negligence. Held, the contract limited the obligations and duties of the trustee, …

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Negligence-Proximate Cause-Duty Of Parking Lot Owner To Car Owner Jun 1931

Negligence-Proximate Cause-Duty Of Parking Lot Owner To Car Owner

Michigan Law Review

Plaintiff parked his car in defendant's parking lot, which was open to the public although no attendant appears to have been on duty. There was an unguarded excavation about forty feet to the rear of the space chosen by the plaintiff. In preparing to leave the lot, plaintiff cranked his car which, apparently, had been left in reverse. The car backed into the excavation, despite plaintiff's efforts to get it under control, and plaintiff sued the lot owner for injuries resulting. Held, that the defendant parking lot owner was not liable. Fielding v. S. Z. Poli Realty Co. (Mass. …

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Torts-Defective Trees-Duty Of Abutter Jun 1931

Torts-Defective Trees-Duty Of Abutter

Michigan Law Review

While the plaintiff was travelling along the public highway, he was injured by the falling of a decayed tree which stood within twenty feet of the highway upon the adjoining land of the defendant. On sustaining a demurrer to the declaration, the court held that there was no duty upon the rural abutter to inspect the tree. Chambers v. Whelen, et al. (C. C. A. 4th, 1930) 44 F.(2d) 340.

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Workmen's Compensation Acts-Gratuitous Help As Casual Employment Jun 1931

Workmen's Compensation Acts-Gratuitous Help As Casual Employment

Michigan Law Review

The plaintiff, a farmer living by the side of a public highway, went to the assistance of the defendant's truck driver whose truck was mired on the highway. The driver had been instructed to get help. While pulling out the truck with a tractor the plaintiff was injured. Held, the plaintiff was an employee of the defendant, and as such his remedies under the Workmen's Compensation Act were exclusive. Johnson v. Wisconsin Lumber and Supply Co. (Wis. 1931) 234 N.W. 5o6.

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A Book Of The Lawyers Quadrangle At The University Of Michigan May 1931

A Book Of The Lawyers Quadrangle At The University Of Michigan

About the Buildings

William W. Cook of the Class of '82, had a dream, and he lived in this dream from its inception until his death. It was to develop a great law school, housed in the most inspiring of buildings and devoted to the ideal of creating leaders of men. He often said, "Intellectual leadership is the greatest problem which faces America today; without leaders we perish." This he placed above all else. With these ideals in mind he proceeded with his work. Architects and artists were dispatched to centers of learning both here and abroad in order that the law school …

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Trusts-Right Of Trustee To Purchase Trust Property May 1931

Trusts-Right Of Trustee To Purchase Trust Property

Michigan Law Review

The trustees under a will filed a petition in the district court asking for an order of court authorizing them to sell and convey to two of the trustees a portion of the real estate held by them in trust, and for authority to sell and convey the remainder of the real estate to the husband of one of the trustees. Three of the beneficiaries were not sui juris, and the remaining beneficiaries refused to give their consent. Held, that a trustee can not purchase trust property from himself when the beneficiary is not sui juris or when …

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Corporations-Liquidation-Jurisdiction Of Court May 1931

Corporations-Liquidation-Jurisdiction Of Court

Michigan Law Review

A recent New Jersey case, Naspo v. Summits Sweet Shoppe, Inc., suggests interesting questions of the jurisdiction of equity over insolvent corporations. In that case, a bill was brought under section 69 of the New Jersey code, by a simple contract creditor with a small claim of $75 praying for the appointment of a receiver and the distribution of the assets. After the court had heard the parties on a motion for the appointment of a receiver, new counsel for the defendant corporation came in at a later hearing, offered to pay plaintiff's claim and asked for a dismissal …

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Public Utilities-Power Of Interstate Commerce Commision To Give Certificate Of Convenience And Necessity May 1931

Public Utilities-Power Of Interstate Commerce Commision To Give Certificate Of Convenience And Necessity

Michigan Law Review

Certain coal fields in West Virginia are served by the Chesapeake and Ohio, the Norfolk and Western, and the Virginian railroads. The Chesapeake and the Norfolk compete for the westbound coal traffic coming over the Virginian which has no lines in the western part of these fields. The Interstate Commerce Commission authorized the Virginian to build a short connecting line which made possible much cheaper carriage over the Chesapeake, and authorized the Norfolk to construct a similar line in order to compete on equal terms. The Chesapeake sought a reversal on the ground that the Interstate Commerce Commission is not …

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Review: The Revival Of Natural Law Concepts, Fowler Vincent Harper May 1931

Review: The Revival Of Natural Law Concepts, Fowler Vincent Harper

Michigan Law Review

A Book Review of THE REVIVAL OF NATURAL LAW CONCEPTS By Charles Grove Haines.

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State Utilities And The Supreme Court, 1922-1930, Thomas Reed Powell May 1931

State Utilities And The Supreme Court, 1922-1930, Thomas Reed Powell

Michigan Law Review

This is a review of Supreme Court decisions for the past eight years on the subject of the application of the Fourteenth Amendment to state regulation of property and business "devoted to a public use'' or "affected with a public interest,'' if one may be allowed to endorse without recourse these amorphous phrases issued by the court. The field covered is broader than that of strict public utilities which may be subjected to the duty to serve all. It includes all efforts on the part of the states to subject particular enterprises to price regulation. Rates of interest and charges …

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Administrative Finality, A. Martin Tollefson May 1931

Administrative Finality, A. Martin Tollefson

Michigan Law Review

The purpose of this article is two-fold. In the first place it is intended to set forth certain determining factors (a) as to whether or not administrative decisions are subject to review in cases where their finality is challenged before the courts and (b) if subject to review, to what extent. The second purpose is to call attention to the need for improvement in this country along the lines of executive or administrative justice from the standpoint of better agencies and better- facilities for disposing of litigated questions within the administrative tribunals. It should be said at the outset, however, …

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Bases Of Jurisdiction In State Taxation Of Inheritances And Property, Charles L.B. Lowndes May 1931

Bases Of Jurisdiction In State Taxation Of Inheritances And Property, Charles L.B. Lowndes

Michigan Law Review

Theoretically there is an accepted distinction between jurisdiction to exact an inheritance tax and a property tax. Is this distinction of practical significance? Does it influence a court in the concrete decision of a case?

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International Law--State Immunity--Waiver--Execution May 1931

International Law--State Immunity--Waiver--Execution

Michigan Law Review

Some interesting illustrations in the field of state immunity have been afforded by the litigation arising out of a contract made by the Swedish State Railways Administration (Kunglig Jamvagsstyrelsen) to buy coal from the American firm of Dexter and Carpenter, shortly after the War. Although the contract was on "c.i.f." terms, the National City Bank, in which funds for the payment for the coal had been deposited, paid for part of this coal- upon presentation of insurance certificates instead of policies. As a consequence, when one shipment of the coal was lost at sea, the Railways were unable to recover …

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Limits Of Trade Association Activity Under The Antitrust Act May 1931

Limits Of Trade Association Activity Under The Antitrust Act

Michigan Law Review

Two recent decisions of the United States Supreme Court serve to focus attention on the legal limits of concerted action under the Sherman Anti-Trust Act by members of trade associations.

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Federal Practice--Unconstitionality Of A State Statutye-Requirement Of A Three-Judge Court May 1931

Federal Practice--Unconstitionality Of A State Statutye-Requirement Of A Three-Judge Court

Michigan Law Review

The plaintiff corporation applied for a preliminary injunction in a suit to restrain the collection of a state franchise tax on the ground that the tax law was unconstitutional under the federal Constitution. After the complaint had been filed and a temporary restraining order had been granted, the defendant moved to dismiss the bill for want of equity, and upon a hearing of the motion the bill was dismissed. The plaintiff then appealed to the circuit court of appeals where the law was held to be unconstitutional and the judgment was reversed. Held, the single judge had no jurisdiction …

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Process-Service By Publication In Creditors' Suits May 1931

Process-Service By Publication In Creditors' Suits

Michigan Law Review

The plaintiff, a citizen of Missouri, recovered a judgment against the defendant, a citizen of New York, in the federal district court, S. D., New York. Execution was issued and returned unsatisfied, and a creditors' bill was brought to subject the surplus of a trust fund in New York, of which the defendant was the cestui, to the satisfaction of the judgment. In the meantime the defendant bad moved to New Jersey, and service of process was had upon her by publication. On a motion to vacate the order allowing service by publication, the court held that the order allowing …

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Treaties-Effect Of War On Commercial Treaties May 1931

Treaties-Effect Of War On Commercial Treaties

Michigan Law Review

The Sophie Rickmers, a German merchant vessel registered at Hamburg and owned by a German corporation with principal place of business there, entered New York Sept. 27, 1921. Upon its entry a tonnage duty of fifty cents per ton was collected under U. S. Rev. Stat. sec. 4219 as amended by 19 Stat. 250 (46 U. S. C. A. 121), and sec. ,4225 (46 U. S. C. A. 128), in addition to the six-cent tonnage duty under 36 Stat. 111 (46 U. S. C. A. 121). The treaty of the United States made in 1827 with the Hanseatic Republics, 1 …

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Treaties-State Successsion-Effect On Commercial Treaties And Reciprocity Statutes May 1931

Treaties-State Successsion-Effect On Commercial Treaties And Reciprocity Statutes

Michigan Law Review

In a suit to recover alleged excessive tonnage duties the court held that the commercial treaties made by the United States with the Hanseatic Republics in 1827 (1 Malloy 901), and with Prussia in 1828 (2 Malloy 1496), were still valid and effective to exempt a vessel from duties that were imposed in 1921; but that U. S. Rev. Stat. sec. 4229-30 and 4 Stat. 2, exempting Prussian vessels from these taxes, were no longer operative. For facts, see note supra. The Sophie Rickmers, 45 F.(2d) 413.

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Trusts-Power Of Equity To Relieve Against The Provisions Of The Trust Instrument May 1931

Trusts-Power Of Equity To Relieve Against The Provisions Of The Trust Instrument

Michigan Law Review

Because of the amount of wealth involved and the prominence of the participants, the recent decision of Surrogate Foley in the surrogate's court of New York county in construing the will of the late Joseph Pulitzer has attracted much public attention. The decision is not without its interest to the legal profession. Mr. Pulitzer in his will expressly prohibited the trustees from selling under any circumstances whatever any stock of the Press Publishing Company, publishers of the "New York World" newspapers. Aside from the shares of stock left in trust the remaining shares are owned by the trustees, Mr. Pulitzer's …

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Conflict Of Laws-Foreign Tort-Survival Of Action May 1931

Conflict Of Laws-Foreign Tort-Survival Of Action

Michigan Law Review

Plaintiff, defendant, and defendant's intestate were all residents of Minnesota. Plaintiff was injured in Wisconsin due to the negligence of the defendant's intestate. Under Wisconsin statute (Laws of Wis., 1927, sec. 287.01) such cause of action survived against the estate of the wrongdoer. By express statute in Minnesota (Minn. Gen. Stat. 1923, sec. 9656) the rule of the common law applied to such actions and they abated on the death of the wrongdoer. Plaintiff sued the defendant executor in Minnesota. Held, that the lex loci delicti governed and the action did not abate. Chubbuck v. Holloway (Minn. 1931) 234 …

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