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Michigan Law Review

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Front Matter, Michigan Law Review Jun 1941

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 39, Issue 8 of Michigan Law Review


The Impact Of The Law Of Powers Upon Our Internal Revenue Laws, Montgomery B. Angell Jun 1941

The Impact Of The Law Of Powers Upon Our Internal Revenue Laws, Montgomery B. Angell

Michigan Law Review

An interesting difference in view has arisen recently in the halls of the Harvard Law School on the use of powers of appointment under the federal estate tax act. One view is that the chief efficacy today of the power of appointment lies in its capacity for use in tax evasion, which should be corrected. The other view is that there is a salutary tendency toward using sensible and flexible powers of appointment, which should be encouraged in meeting changing and difficult family situations, but which would be checked were the former view accepted. Thus we find here the age-old …


Niemeyer On Law Without Force, Josef L. Kunz Jun 1941

Niemeyer On Law Without Force, Josef L. Kunz

Michigan Law Review

Whereas Lauterpacht tried to determine the function of law in the international community, Niemeyer investigates the function of politics in international law. His book is on politics, but it is theoretical in its treatment and not political. The book not only represents an ambitious work, but is certainly interesting and stimulating. As to his ideas, Niemeyer derives from Herman Heller, to whom the book is dedicated. Heller's theory of the States is not a legal, but a sociological, a functional theory of the modern, occidental State as it developed since the Renaissance, a theory which stands halfway between Kelsen's "pure …


Administrative Law - President's Power To Remove, Rex B. Martin Jun 1941

Administrative Law - President's Power To Remove, Rex B. Martin

Michigan Law Review

Plaintiff had been appointed to the board of directors of the Tennessee Valley Authority by the President with the advice and consent of the Senate. The statute creating this public corporation gives the President power to remove any director who appoints or promotes lower officials on the basis of anything other than merit. Congress is authorized to remove a member of the board by a concurrent resolution of the two houses. Plaintiff was summarily removed by the President and sued to recover his salary for the whole of the prescribed nine-year term of office. Held, that the plaintiff, having …


Bankruptcy- Municipal Reorganization - Fairness Of Plan, Kenneth J. Nordstrom Jun 1941

Bankruptcy- Municipal Reorganization - Fairness Of Plan, Kenneth J. Nordstrom

Michigan Law Review

A local government district, finding itself hopelessly in debt, filed a petition for relief under Chapter IX of the Bankruptcy Act as amended. The municipal debt composition plan provided that bondholders would receive eight cents on the dollar. The evidence showed that a considerable quantity of bonds were bought by local landowners at much more than eight cents on the dollar, evidently for the purpose of being used in getting the approval of some such plan as proposed, in the expectation of an increase in value of their lands by improvements to be made by the debtor through a loan …


Carriers - Common Carriers - Segregation Of Races - Discrimination, John C. Johnston Jun 1941

Carriers - Common Carriers - Segregation Of Races - Discrimination, John C. Johnston

Michigan Law Review

Plaintiff, a negro, had purchased a railroad ticket entitling him to first class accommodations from Chicago, Illinois to Hot Springs, Arkansas. When the train entered Arkansas, the conductor, in purported compliance with an Arkansas statute requiring segregation of colored from white persons forced plaintiff to leave the Pullman car and ride in the second-class car set aside for colored passengers. Plaintiff alleged that this car was not equipped with the same conveniences which were provided for white passengers traveling first class, and he filed a complaint with the Interstate Commerce Commission claiming that he had been discriminated against in violation …


Judgments - Declaratory Judgments - Use In Statutory Interpretation, Reid J. Hatfield Jun 1941

Judgments - Declaratory Judgments - Use In Statutory Interpretation, Reid J. Hatfield

Michigan Law Review

A mining company, subject to the Fair Labor Standards Act, brought an action against the United States District Attorney for Idaho for a declaratory judgment that it was not subject to threatened criminal prosecutions and penalties under the act. The company had not included the forty minutes allowed for lunch in estimating the number of hours worked by its employees. The employees and their labor union threatened to sue, claiming the lunch period was part of their working hours and that they were therefore to that extent required to work overtime without extra pay. The Department of Labor and the …


Labor Law - Appropriate Bargaining Unit - Appropriateness Of Multiple-Plant Unit Where Majority In One Plant Oppose Such Unit, Oliver B. Crager Jun 1941

Labor Law - Appropriate Bargaining Unit - Appropriateness Of Multiple-Plant Unit Where Majority In One Plant Oppose Such Unit, Oliver B. Crager

Michigan Law Review

The Pittsburgh Plate Glass Co., a Pennsylvania corporation, had six plants in its plate glass division located in five scattered states. In 1938 a C. I. O. affiliate filed a charge with the National Labor Relations Board that the company had violated the National Labor Relations Act by dominating and interfering with a company union at the Missouri plant. The company union was not a party to the proceeding. The company consented to a stipulation and consent decree directing it to cease and desist from dominating or recognizing the company union. Shortly thereafter in certification proceedings, the board held that …


Labor Law - National Labor Relations Act - Employer's Refusal To Hire A Union Member As An "Unfair Labor Practice", Oliver B. Crager Jun 1941

Labor Law - National Labor Relations Act - Employer's Refusal To Hire A Union Member As An "Unfair Labor Practice", Oliver B. Crager

Michigan Law Review

Following a strike at respondent corporation which had started prior to the effective date of the National Labor Relations Act, the respondent refused to hire two men who had ceased to be in its employ before the strike but who sought employment after its close. The National Labor Relations Board, finding that the men had been refused employment because of their affiliations with a union and hence that the respondent had violated section 8(3) of the act, ordered the corporation to offer the two men employment and also ordered reimbursement for the loss of pay, minus actual earnings in the …


Book Notes, Michigan Law Review Jun 1941

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.


Taxation - Gift Tax - Each Beneficiary Of Trust As Donee For Purpose Of Exemption Provision, Alfred I. Rothman Jun 1941

Taxation - Gift Tax - Each Beneficiary Of Trust As Donee For Purpose Of Exemption Provision, Alfred I. Rothman

Michigan Law Review

In 1935, the donor created a trust for the benefit of seven children. The donor in her gift tax return, pursuant to section 504b of the Gift Tax Act, excluded from the taxable amount $5,000 for each child. The commissioner's action in treating the trustee as the donee and in allowing a single deduction of $5,000 was sustained by the Board of Tax Appeals. The circuit court of appeals reversed. Held, that the taxpayer was entitled to seven deductions, one for each beneficiary under the trust. Helvering v. Hutchings, (U.S. 1941) 61 S. Ct. 653.


Monthly Periodical Index, Michigan Law Review Jun 1941

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

This department lists the articles and comments which appear in twenty-five leading law reviews.


The Present Status Of Collective Contracts In The American Legal System, Arthur Lenhoff May 1941

The Present Status Of Collective Contracts In The American Legal System, Arthur Lenhoff

Michigan Law Review

Can it be that less than a score of years has elapsed since Schlesinger v. Quinto pointed out the difference between employment contracts and collective contracts? And yet in that short period the various objections recurrently raised regarding the enforceability of these contracts, such as lack of consideration and of mutuality as well as the dictate of the "personal service" rule, came to be disregarded. At a time when employers are not only obliged to bargain collectively but also, after reaching an agreement, to reduce it to writing, reminiscences of the "custom" doctrine must, indeed, resemble the frozen sounds in …


Corporations - Reserved Powers - Abrogation Of Preferred Dividend Arrearages By Charter Amendment, Merger, Or Consolidation, William D. Sutton May 1941

Corporations - Reserved Powers - Abrogation Of Preferred Dividend Arrearages By Charter Amendment, Merger, Or Consolidation, William D. Sutton

Michigan Law Review

The "malignant" decision in the Dartmouth College case fathered the passage of reserved-power statutes in virtually all the states. These statutes, in turn, when opposed by the retaliatory fundamental-rights safeguards invoked by the courts for the protection of corporate stockholders, procreated problems which have grown more baffling and incorrigible with age. Not the least among these are proposed changes in the liabilities or rights of stockholders, especially the attempted abolition of unpaid accrued dividends upon cumulative preferred stock where there exists a surplus which might lawfully be applied to the payment of such dividends.


Restitution - Effect Of Illegality - Right Of Person Not A Party To The Illegal Transaction To Invoke Defense Of Illegality, Alfred I. Rothman May 1941

Restitution - Effect Of Illegality - Right Of Person Not A Party To The Illegal Transaction To Invoke Defense Of Illegality, Alfred I. Rothman

Michigan Law Review

In an action for conversion of stock, plaintiff alleged that her intestate was the actual owner of the capital stock of a brewing corporation. Intestate had in fact furnished the consideration for the stock, but it was issued in the name of one Vogel as his dummy and agent. After the death of intestate, the defendant, with knowledge of plaintiff's interest, acquired the stock from Vogel by means of a pretended purchase and converted it to his own use. As a defense to the conversion action, defendant interposed a plea of illegality, alleging that the capital stock was issued to …


The Evolution Of The "Duty To Bargain" Concept In American Law, Russell A. Smith May 1941

The Evolution Of The "Duty To Bargain" Concept In American Law, Russell A. Smith

Michigan Law Review

Promotion of collective bargaining appears to be a governmental policy borne of the travails of economic emergency during World War I, though it was somewhat foreshadowed by the earlier attempt in the Erdman Act of 1898 to outlaw the "yellow-dog'' contract. It first gained recognition by certain of the individual branches of the administration II and was subsequently suggested as an over-all policy, along with recognition of the right of self-organization and other principles, by the War Labor Conference Board. This board was appointed in January, 1918, by the Secretary of Labor and consisted of nominees of the National Industrial …


Certiorari - Review Of Governor's Dismissal Proceeding, Kenneth J. Nordstrom May 1941

Certiorari - Review Of Governor's Dismissal Proceeding, Kenneth J. Nordstrom

Michigan Law Review

Proceedings were instituted against the directors of a California prison on charges of misconduct, incompetency, and neglect of duty, which resulted in their removal from office by the governor. A constitutional provision authorized the governor to appoint such directors, who were to hold, office for ten years, and provided that the governor should have the power to remove the directors for misconduct, incompetency, or neglect after an opportunity to be heard upon written charges. Due notice and a complete hearing were accorded to the directors as required. Plaintiff directors seek review of the removal proceedings by writ of certiorari. Held …


Front Matter, Michigan Law Review May 1941

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 39, Issue 7 of Michigan Law Review


Jurisprudence On Parade, Hessel E. Yntema May 1941

Jurisprudence On Parade, Hessel E. Yntema

Michigan Law Review

Jurisprudence is part of the pageant that makes history. This is a truism that, it may be added, obtains irrespective of the view held as to the significance of general legal theory. To some, the constructs of jurisprudence may seem but laggard symbols of more vital facts and trends. The degree of the lag exhibited by the more celebrated of such constructs may suggest to an anthropologically-minded observer, such as Thurman Arnold, that the apparent function of jurisprudence in the present social climate is neither to represent reality nor to control the administration of justice, but rather by the magic …


Constitutional Law - Commerce Clause - Scope Of Federal Power Over Intrastate Activities-Fair Labor Standards Act, Michigan Law Review May 1941

Constitutional Law - Commerce Clause - Scope Of Federal Power Over Intrastate Activities-Fair Labor Standards Act, Michigan Law Review

Michigan Law Review

Authority of Congress to regulate intrastate activities through the commerce clause is derived from two principal sources: (1) the federal power to preserve the flow of commerce by eliminating potential burdens and obstructions; (2) the federal power to prohibit the interstate transportation of goods resulting in the spread of conditions which Congress considers detrimental to the general welfare. Utilization of the first source of authority over intrastate activities is exemplified by the National Labor Relations Act, enabling the federal government to regulate an aspect of local production likely to burden commerce. Utilization of the second source of authority is exemplified …


Constitutional Law - Commerce Clause - Federal Trade Commission - Jurisdiction Over Intrastate Commerce Affecting Interstate Commerce, John C. Johnston May 1941

Constitutional Law - Commerce Clause - Federal Trade Commission - Jurisdiction Over Intrastate Commerce Affecting Interstate Commerce, John C. Johnston

Michigan Law Review

Appellee, an Illinois corporation engaged in manufacturing and selling candy within the state of Illinois, used in marketing its product a method of "break and take" packages involving an element of chance. The Federal Trade Commission had found that this practice constituted "unfair competition" and had ordered one hundred twenty of appellee's competitors who were engaged in interstate commerce to cease using it. The commission issued a like order against appellee on the theory that its activities, although wholly intrastate, "affected" interstate commerce. Appellee appealed from the order, contending that the Federal Trade Commission Act did not authorize the commission …


Constitutional Law - Commerce Clause - Labor Law - Power Of State To Enjoin Unfair Labor Practices Of Employees In Industries Engaged In Interstate Commerce, Michigan Law Review May 1941

Constitutional Law - Commerce Clause - Labor Law - Power Of State To Enjoin Unfair Labor Practices Of Employees In Industries Engaged In Interstate Commerce, Michigan Law Review

Michigan Law Review

The appellant (defendant in the case below) and certain of its members were found guilty of unfair labor practices as defined by the Wisconsin Employment Relations Act. Plaintiff-appellee issued a cease and desist order, which was sustained by the lower court despite defendant's contention that the statute was unconstitutional on the ground that Congress had precluded such state legislation affecting interstate industries by enacting the National Labor Relations Act. Held, plaintiff's order sustained. State legislation not repugnant to the Wagner Act is operative in this field so long as the National Labor Relations Board has not acted in the …


Damages - Injunction Bond - Attorney's Fees As Damages, Harold P. Graves, Raymond H. Rapaport May 1941

Damages - Injunction Bond - Attorney's Fees As Damages, Harold P. Graves, Raymond H. Rapaport

Michigan Law Review

Frequently, when a litigant seeks to establish rights with respect to particular property, it is possible for the opposing party so to act with respect to the property involved, while litigation is pending, as to deprive the plaintiff of the substantial benefit of his remedy should he prevail. Consequently, on prima facie showing of right, courts of equity will grant a temporary injunction to "freeze" the situation until the rights of the parties are finally determined. Since the temporary injunction is issued without a final determination of the rights of the parties, the enjoined party is deprived of dominion over …


Administrative Law - National Labor Relations Board - Permissible Scope Of Cease And Desist Orders, Rex B. Martin May 1941

Administrative Law - National Labor Relations Board - Permissible Scope Of Cease And Desist Orders, Rex B. Martin

Michigan Law Review

The National Labor Relations Board found that the Express Publishing Company had refused to bargain collectively. Thereupon the board issued an order requiring the company: (1) to cease and desist refusing to bargain collectively; and (2) to cease and desist in any manner interfering with, restraining, or coercing its employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations of their own choosing, and to engage in concerted activities for the purposes of collective bargaining or other mutual aid and protection as guaranteed in section 7 of the National Labor Relations Act. The circuit …


Criminal Law And Procedure-Jury Trial- Directed Verdict Of Guilty- Michigan Rule, Michigan Law Review May 1941

Criminal Law And Procedure-Jury Trial- Directed Verdict Of Guilty- Michigan Rule, Michigan Law Review

Michigan Law Review

The defendant was convicted of negligent homicide as the result of a collision between his car and another, in which an occupant of the other car was killed. The trial court charged the jury, inter alia, "The court submits the case to you for your determination. The view of the court is that under the law there is only one verdict that can be found by the jury under the evidence in this case in its most favorable light." This was objected to by the defendant as error. Held, the instruction was in effect a direction of a verdict …


Bankruptcy - Corporate Reorganization - Absolute Priority Rule, Kenneth J. Nordstrom May 1941

Bankruptcy - Corporate Reorganization - Absolute Priority Rule, Kenneth J. Nordstrom

Michigan Law Review

-A plan for reorganization under section 77B of the Bankruptcy Act involved a debtor holding company and two subsidiaries. Each subsidiary had a bonded indebtedness which, including unpaid accrued interest, was in excess of the value of assets that were s


Labor Law - Unincorporated Unions As Entities For The Purpose Of Being Made Parties Defendant, Rex B. Martin May 1941

Labor Law - Unincorporated Unions As Entities For The Purpose Of Being Made Parties Defendant, Rex B. Martin

Michigan Law Review

Union officials wrongfully discharged plaintiffs from the union. Plaintiffs, being unable to procure employment in a "closed-shop" trade, asked for a writ of mandamus to direct defendants, as representatives of the association, to reinstate plaintiffs and recompense them for damages suffered. Held, that a reinstatement order and a damage judgment against the union should be granted. Nissen v. International Brotherhood of Teamsters, etc., (Iowa, 1941) 295 N. W. 858.


Judgments - Declaratory Judgments - Availability To Alleged Infringers In Patent Cases, Michigan Law Review May 1941

Judgments - Declaratory Judgments - Availability To Alleged Infringers In Patent Cases, Michigan Law Review

Michigan Law Review

In addition to an injunction and an accounting, the prayer of the plaintiff requested a declaratory judgment to determine the plaintiff's rights in relation to a patent of the defendant. The petition alleged the plaintiff was importing and offering for sale a chemical called "Estradoil," and that the defendant had notified the plaintiff's customers that the chemical infringed the defendant's patent. A year prior to the action, the defendant had published a notice in a trade journal stating that a certain patent had been issued to it which covered the chemical known as "Estradoil," and that any use of the …


Trade Restraints - Associations Of Manufacturers To Combat Style Piracy - Illegal Restraints Of Trade, Michigan Law Review May 1941

Trade Restraints - Associations Of Manufacturers To Combat Style Piracy - Illegal Restraints Of Trade, Michigan Law Review

Michigan Law Review

In order to combat the practice of "style piracy" among competitors, a large number of producers of women's coats and dresses formed an association, whose membership was composed of designers, manufacturers, and distributors. Producers adjudged copyists by the association were not permitted membership. The clear purpose of the association was primarily to boycott retailers who refused to deal solely with members of the association, and secondarily to boycott, and eliminate competition from, the copyists. In addition there was provided a system of registration for designs made by members, and a judicial type of machinery for protecting the designers' interest therein. …


Trusts - Rights Of Successive Beneficiaries To Corporate Stock Dividends - Ordinary And Extraordinary Dividends, John C. Johnston May 1941

Trusts - Rights Of Successive Beneficiaries To Corporate Stock Dividends - Ordinary And Extraordinary Dividends, John C. Johnston

Michigan Law Review

Testatrix died in March, 1935 leaving 5,471 shares of N corporation stock in two trusts with directions that a portion of the income therefrom should be paid to her son during his life with remainder over to another. At the time of testatrix' death the N corporation had a large surplus, and had been paying regular quarterly dividends from current income. From April, 1935 to December, 1937 these quarterly dividends were continued at one dollar per share less than was customary, but because of business conditions they were paid partly from the surplus which had accumulated prior to the death …