Digital Commons Network^™

Public Utilities - Holding Companies - Power Of State Commission To Regulate Intercorporate Charges

Michigan Law Review

The Public Service Commission of Kansas issued an order directing nine local gas companies to cease setting up as an item of operating expense more than a certain amount for gas being furnished the companies by an interstate pipe line company. The nine distributing companies and the pipe line company, all of which were affiliated companies within the meaning of a Kansas statute and ultimately controlled by the same holding company, secured an injunction in the three-judge federal court, and the commission appealed to the United States Supreme Court. Held, that the injunction should not have been granted. State …

Cooperation Between The Interstate Commerce Commission And The State Commissions In Railroad Regulation, Martin L. Lindahl

Michigan Law Review

Cooperation between the Interstate Commerce Commission and the state commissions in railroad regulation has been developed to increase the effectiveness of public control under our dual regulatory system. The division of power between federal and state governments, based upon the traditional distinction between interstate and intrastate commerce, has led to a multitude of diverse and conflicting statutes and administrative orders applicable to the same set of transportation agencies. In large measure the problem of dual control has been solved by giving to the federal government a virtually complete occupancy of the fields of rate, finance, and service regulation of interstate …

Descent And Distribution - Inheritance As Affected By Heir's Murder Of Deceased

Michigan Law Review

Albert Tarlo shot and killed his wife while she slept, then killed his daughter, and next killed himself. He survived the wife and daughter by a few hours. The daughter left no will, and by the statute of distribution her property went to the father. A statute provided in effect that no one who should be "finally adjudged guilty" of murder should be allowed to take as heir or next of kin of the person killed. Held, that the father's estate might take the daughter's estate by inheritance. In re Tarlo's Estate, 315 Pa. 321, 172 Atl. 139 …

Are Unfair Methods Of Competition Actionable At The Suit Of A Competitor?, Grover C. Grismore

Michigan Law Review

The steps which have recently been taken, both through federal and state legislation, to regulate trade practices by outlawing what have been denominated "unfair methods of competition" have brought to the fore a problem that has vexed lawyers and legal writers for a long time. The question is whether a competitor who has been injured as a result of a rival's use of one of the condemned methods of competition can maintain any action either at law or in equity against the wrongdoer. Contrary to what has always been the practice in drafting so-called "anti-trust" laws, the legislation dealing with …

Conflict Of Laws - Federal Employers Liability Act - Jurisdiction Of State Courts Over Foreign Causes Of Action Between Nonresident Parties, H. F. B.

Michigan Law Review

The historical classification of actions for personal injuries as transitory imposes no limitation upon the prosecution of foreign suits, either by reference to the residence of the parties or the place in which the action arises. Whenever jurisdiction of the person of the defendant is obtained, the power to hear and determine this type of tort action inheres in every court having jurisdiction of the subject matter. An extreme application of the doctrine of the transitory character of personal actions is not infrequently permitted under the statutes as to venue, wherever suits between parties, all of whom are nonresidents of …

Bills And Notes-Bonds Payable At Office Of Trustee Which Becomes Insolvent After Deposit According To Agreement But Before Bonds Presented, Ralph W. Aigler

Michigan Law Review

By the terms of a trust mortgage securing a large bond issue the debtor agreed that it would punctually pay the principal and interest of every bond according to the terms of the bond and coupons and would "deposit the necessary funds for such purpose with the trustee at least five days prior to the respective due dates." For the maturities of March 1st and September 1st, 1931, the requisite funds were deposited. Plaintiff's coupons of March and his bonds and coupons of September were not presented on the due dates and not until after the trustee had failed and …

Criminal Law And Procedure -Automobiles -Violation Of Traffic Regulations - Liability Of Registered Owner

Michigan Law Review

A traffic ordinance of the city of Boston provided, "No person shall allow, permit, or suffer any vehicle registered in his name to stand or park in any street . . . in violation of any of the rules and regulations of the Traffic Commission of the City of Boston." Under this ordinance defendant, the registered owner of a car, was convicted of overtime parking without any evidence that she herself had parked the vehicle. Defendant appealed. Held, under an ordinance such as this absence of criminal intent makes no difference and the registered owner is criminally liable. Commonwealth …

Public Officers-Sheriff's Removal From Office- Use Of Third Degree

Michigan Law Review

In a quo warranto proceeding instituted under a Kansas statute providing that an officer of this state "who shall willfully misconduct himself in office, or who shall willfully neglect to perform any duty enjoined upon such officer by any of the laws of the state . . . shall forfeit his office and shall be ousted from such office," it was held, that a sheriff who assaulted and used other third degree practices on a prisoner to force a confession from him had misconducted himself in office and should be removed. State ex rel. Boynton v. Jackson, (Kan. …

Trade Marks- Use Of Same Mark On Dissimilar Goods

Michigan Law Review

The defendant began to manufacture and sell mechanic's hand soap, adopting the word "Par" as a trade-mark. Within the same year the plaintiff corporation, ignorant of the defendant's prior use of the word "Par," adopted the same trade-mark for its granulated laundry soap. Thereafter the defendant, assuming the name "Par Soap Co.," began to market a granulated laundry soap under the same trade-mark, "Par." Each party prayed for an injunction against infringement by the other. Held, the defendant acquired a common-law trade-mark as applied to mechanics' hand soap but not the right to extend it to the whole field …

Waters And Watercourses - Percolating Waters - Pollution

Michigan Law Review

Defendant operated an oil refinery and deposited waste therefrom on his land. The percolating waters under his land were a part of the supply for the plaintiff's well on adjoining land. These waters were contaminated and rendered plaintiff's well water unfit for human or livestock consumption. Held, that in the absence of negligence this was not a nuisance, but was damnum absque injuria. Rose v. Socony-Vacuum Corp., (R. I. 1934) 173 Atl. 627.

Book Notes, Michigan Law Review

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.

Contracts - Illegality - Effect Of Partial Illegality

Michigan Law Review

It has long been accepted that the illegality of part of a contract does not necessarily make the entire contract unenforceable. However, it is difficult to predict in a given case whether or not the court will hold that recovery may be had upon the lawful part of the contract. It is often said that such recovery will be allowed when the illegal portion of the contract can be clearly separated from the lawful part, but .even when stated in such broad terms - so broad in fact that it is of little help in solving the problem - the …

The Economic Aspects Of Inflation, Leonard L. Watkins

Michigan Law Review

In every large industrial country there is a considerable group that urges inflation as a path to national prosperity. They have made least impression on monetary policies in countries that experienced severe inflation during the war and post-war years. But in the United States, where war-time inflation was relatively moderate and where losses in the recent depression have been especially severe, inflationary measures have been adopted and agitation persists for the adoption of still more radical policies.

Effects Of Inflation On Private Contracts: Germany, 1914-1924, John P. Dawson

Michigan Law Review

The German experience with inflation is unique not only in the magnitude of the ultimate disaster but in the wealth and variety of the record which it left behind. From that experience we may still learn much. The problems presented at successive stages of the German inflation differ in degree but not in kind from those which appear in any major shift in the general level of prices. The devices, legal and economic, for restoring an equilibrium thus destroyed must be essentially the same in any great country organized, as Germany was, for specialized, large-scale production. From a study of …

Federal Regulation Of Motor Carriers, Paul G. Kauper

Michigan Law Review

Regulations pertaining to public safety include such matters as requirements concerning drivers' licenses, safety equipment, clearance lights, maximum speed limits, and others of a similar nature. It has already been pointed out that the states in the absence of federal regulation can enforce safety regulations of this kind against interstate motor carriers. It has also been shown that federal regulation in this field is desired in order to relieve interstate motor carriers from diverse and conflicting state laws. The only limitation upon the right of the federal government to impose such regulations upon interstate motor carriers is the general requirement …

Banks And Banking - Bank Stock Holding Company As Fraud On Double Liability Statute

Michigan Law Review

The question as to when, to prevent evasion of a statutory liability, a court will look behind a corporate entity in order to hold individual stockholders liable has been raised in two recent cases. The first, a federal case, involved the Detroit Bankers Company, a Michigan corporation formed for the purpose of holding and investing in bank stocks. Each corporate stock certificate of the holding company contained an "agreement" that the holder of the stock would be liable for his pro rata share of any assessment for which the corporation might become liable as a result of the failure of …

Corporations-Tort Liability Of Independent Taxi Owners' Associations

Michigan Law Review

(a) In order to meet the competition of the large taxicab companies a number of taxi drivers owning their own cabs join together to advertise under a common name, establish a more efficient phone service, and secure the benefits of large-scale garage service. For this purpose a non-profit-sharing corporation is organized, to the expenses of which each driver contributes initiation fees and dues. (b) In order to avoid the liabilities which attend the ownership of cars one of the large taxi companies sells its cabs to the drivers. The drivers now pay the company a certain compensation in "dues" for …

Aliens-Right Of Illegally Present Alien To Sue-Tortsplaintiff's Violation Of Statute

Michigan Law Review

The plaintiff was injured when struck by an automobile operated on the public way by defendant Long. He brought two suits in tort, one against Long, the other against Adamski, the owner of the car. Defendants contested his right to sue on the ground that he was in the country admittedly in violation of the immigration laws. They offered the further objection that his illegal presence made him a trespasser on the highway, and hence, under the Massachusetts doctrine, he was ineligible to maintain a suit arising from mere negligence. Held, plaintiff's unlawful residence in the country was no …

Constitutional Law - Home Owners Loan Corporation Act - Penalties Clause

Michigan Law Review

An indictment under the penalties clause of the Home Owners Loan Corporation Act, brought before the promulgation of authorization of charges for services rendered, was dismissed on the ground that, prior to such authorization, the act was not sufficiently definite to satisfy the Sixth Amendment to the Constitution of the United States. United States v. Willard, (D. C. W.D.Mich.No.4057, September 27, 1934) 2 U.S.LAW WEEK, index p. 99.

Innkeepers - Statutory Construction - Hospital As Hotel

Michigan Law Review

Plaintiff hospital claimed a lien upon the personal effects of a deceased patient left in their possession. An Iowa statute defines a hotel, for the purposes of its operator's lien, as including "inn, rooming house, and eating house, or any structure where rooms or board are furnished, whether to permanent or transient occupants." The term "guest" is defined to include "any legal occupant of any hotel as herein defined." Held, that "structure" as used in the statute refers to one used for the entertainment of ordinary individuals, as in the case of the structures enumerated; and that a hospital, …

Municipal Corporations - Immunity Of City From Tort Liability - Attractive Nuisance

Michigan Law Review

The minor plaintiff, a child of eleven, was injured when she fell from a swing in a playground maintained by the defendant, and struck a jagged stone which protruded from the surface of the earth about eight feet beyond the base of the swing. She and her parents joined as plaintiffs in this suit, alleging that the defendant was negligent in failing to keep the ground around the swing in a reasonably safe condition and free from dangerous objects upon which a child might fall. Held, the defendant is liable for its failure to keep the earth around the …

Book Notes, Michigan Law Review

Michigan Law Review

This department undertakes to list and, when possible, describe briefly current books on law and matters closely related thereto.

Penalties As Affected By Good Faith Litigation, Robert E. Hardwicke

Michigan Law Review

There are many state laws, as well as the so-called National Emergency Acts and other federal laws, providing for the imposition of penalties for the violation of a statute, or an order or regulation of a board, commission, or executive officer. Under, the National Industrial Recovery Act, sec. 3 (f), penalties are fixed for the violation of codes promulgated thereunder. In many instances the penalties are cumulative, each day's violation being a separate offense.

The primary question here to be discussed is whether good faith litigation as to the validity of such a law, code, order or similar regulation gives …

Partnership-Incorporation-Liability To Previous Creditors

Michigan Law Review

The two defendants, partners in the operation of the Mulkey Motor Co., an automobile sales establishment, had indorsed promissory notes in the name of the firm and had sold them to the plaintiff. Later the defendants incorporated under the same name and continued to carry on the business as before. Thereafter the plaintiff, without knowledge of the incorporation, purchased from the defendants certain notes which were indorsed in the accustomed fashion. In an action against the defendants as partners, based on such indorsements of the latter notes, it was contended that the debt was that of the corporation. Held, …

Federal Regulation Of Motor Carriers, Paul G. Kauper

Michigan Law Review

By it's policy of granting financial assistance to the States for roadbuilding purposes - a policy first inaugurated in 1916 - the federal government has made substantial contributions to the development of highway transportation in the United States. In a period of seventeen years ending with the fiscal year 1933, Congress had appropriated and allocated to the several States $1,290,000,000.00 for the purpose of building good roads. Since 1921 the use of federal aid funds has been limited to the improvement of a designated 7 per cent of each State's highway mileage. By May 31, 1933, work was completed on …

Corporate Reorganization Under Section 77b Of The Bankruptcy Act, Jacob J. Kaplan

Michigan Law Review

In the closing hours of its legislative life the 73rd Congress adopted the amendment to the Bankruptcy Act providing for the reorganization of corporations, and designated as Section 77B. The Act was approved. by the President on June 7, 1934. The statute had had a long and checkered history in Congress. Such legislation barely failed of enactment in the preceding session when Congress first gave to natural persons availing themselves of bankruptcy procedure the right to call themselves "debtors" rather than "bankrupts," and provided a substantially similar method of reorganization for railroad corporations engaged in interstate commerce. The present statute …

Corporations -Accommodation Obligations - Effect Of "Guarantee" In Powers Section Of Statute

Michigan Law Review

The court in the principal case recognized the general prohibition against corporate accommodation obligations but held the defendant liable on the theory of consent of the stockholders. With this portion of the opinion the writer has no quarrel. But exception is taken both to the interpretation given to the statute by the court and the accuracy of the principle relied upon, as expressed in the dictum quoted.

Executors And Administrators--Powers Of Co-Executors

Michigan Law Review

The powers of co-trustees are usually spoken of as "joint," while the powers of co-executors are commonly referred to as "joint and several." As it is fairly obvious that if executors have a several power they may also exercise it jointly, it might be preferable to refer to the powers of co-executors as "joint or several." For not all the powers of a co-executor are joint and several. Some are several, while others are only joint. The general rule is that a co-executor has the several power to bind the estate as to matters in the ordinary course of administration, …

The Vendee's Lien- On Land And Chattels

Michigan Law Review

The vendee's lien is now firmly established as an equitable device to insure full restitution to the purchaser of land on his rescission for the vendor's fraud or default. It first appeared in a dictum in an early English case where it was suggested as a possible analogy to the implied vendor's lien for the purchase money. But it was 1855 before the question was presented squarely to an English court of record, and 1860 when the House of Lords definitely approved it. Long before this, however, courts of equity in the United States had begun to μse this device …

Constitutional Law - New Deal Legislation - Gold Hoarding Statute

Michigan Law Review

Two cases involving acts of Congress passed in March 1933 to prevent the hoarding of gold' were denied a review by the United States Supreme Court on October 8. Both of these cases involved the same facts. Plaintiff had delivered certain gold bars to a bank for safe-keeping. Later the bank notified him that, pursuant to an executive order by the President of the United States, it would have to surrender the gold. Immediately the plaintiff demanded the return of the bullion, which demand was refused, and he filed bills for specific performance of the bailment contract against the bank …