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Michigan Law Review

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Constitutional Law - Power Of Legislative Investigating Committee To Supersede Grand Jury, D. M. Swope Jun 1939

Constitutional Law - Power Of Legislative Investigating Committee To Supersede Grand Jury, D. M. Swope

Michigan Law Review

The court of quarter sessions of Dauphin County ordered a grand jury investigation of alleged criminal misconduct by civil officers of the commonwealth. The governor then issued a call for a special session of the legislature. When this body had convened, seven members of the House of Representatives were appointed a committee to investigate the charges against those civil officers liable to impeachment. This committee sought a writ of prohibition to restrain the quarter sessions court from proceeding with the grand jury investigation, in pursuance of a statute enacted at the special session of the legislature giving the legislative investigating …


Constitutional Law - Taxation Of Salaries Of Judges Of The United States, Thomas K. Fisher Jun 1939

Constitutional Law - Taxation Of Salaries Of Judges Of The United States, Thomas K. Fisher

Michigan Law Review

The Revenue Act of 1932 provided that "In the case of Presidents of the United States and judges of courts' of the United States taking office after June 6, 1932, the compensation received as such shall be included in gross income; and all Acts fixing the compensation of such Presidents and judges are hereby amended accordingly." A United States circuit judge, appointed in 1933, was required to include in his tax return the amount of his salary, under the Revenue Act of 1936, which re-enacted the above provision. His claim for refund being rejected, the present suit was brought, and …


Constitutional Law - Validity Of Voting Machine In General Election - Constitutional Construction, Michigan Law Review Jun 1939

Constitutional Law - Validity Of Voting Machine In General Election - Constitutional Construction, Michigan Law Review

Michigan Law Review

Pursuant to statutory provisions the fiscal court of Jefferson County, Kentucky, appropriated $1,000 for renting voting machines to be used in the general election of 1938. The county on relation of its attorneys filed suit for a declaratory judgment on the constitutionality of the statute. The relators appealed from a judgment declaring the act valid. Held, the statute authorizing the use of voting machines in popular elections is a violation of section 147 of the Kentucky Constitution which provides for a "secret official ballot, furnished by public authority to the voters at the polls, and marked by each voter …


Mortgages - Limitation Of Actions - Deficiency Decree On Basis Of Covenant In Mortgage When Action On Note Barred, Donald M. Swope Jun 1939

Mortgages - Limitation Of Actions - Deficiency Decree On Basis Of Covenant In Mortgage When Action On Note Barred, Donald M. Swope

Michigan Law Review

Defendant executed and delivered to plaintiff a promissory note and a mortgage securing it. The mortgage contained a covenant to pay $10,000 (the principal amount of the note) "according to the terms of a certain promissory note bearing even date herewith." Upon foreclosure it was held, three judges dissenting, that the mortgagee was entitled to a deficiency decree notwithstanding action on the note was barred by the statute of limitations. Guardian Depositors Corporation of Detroit v. Savage, 287 Mich. 193,283 N. W. 26 (1938).


Taxation - Income Tax - Whether Purchase And Retirement By Corporation Of Own Bonds At Less Than Amount Of Issue Constitutes A Taxable Gain Where Corporation Is Insolvent, S. R. Stroud Jun 1939

Taxation - Income Tax - Whether Purchase And Retirement By Corporation Of Own Bonds At Less Than Amount Of Issue Constitutes A Taxable Gain Where Corporation Is Insolvent, S. R. Stroud

Michigan Law Review

Petitioner, a railway corporation, in 1906 leased all its property to an operating company for a term of fifty years. At the same time petitioner issued $434,000 in first mortgage bonds which were used to refund a prior issue of $350,000 and to provide for certain improvements on the road. Interest on the bonds was to be met by lessee's payment of the greater part of the rental directly to the trustee of the mortgage bonds, but no provision for a sinking fund was made. In October, 1932, petitioner purchased $19,000 par value of aforesaid mortgage bonds for $4,750, and …


Constitutional Law - Mortgages - Moratoria On The Way Out?, Elbridge D. Phelps Jun 1939

Constitutional Law - Mortgages - Moratoria On The Way Out?, Elbridge D. Phelps

Michigan Law Review

As a general proposition, one might perhaps feel prone to quarrel with the statement that "history repeats itself," but there can be little doubt that it applies full well to legislation aimed at relieving hard-pressed debtors in times of financial crises. From our earliest American history, every economic "winter" has provoked a landslide of pro-debtor legislation. Nor have mortgage debtors been overlooked in this regard. The remedies suggested have been as varied and ingenious as human minds could concoct. A brief review of the past decisions indicates that when they could be said to impair the obligation of contract, such …


Constitutional Law - Special Assessments - Property Owner's Right To Hearing Under Due Process Clause - Legislative Determination Of Benefits, Richard S. Brawerman Jun 1939

Constitutional Law - Special Assessments - Property Owner's Right To Hearing Under Due Process Clause - Legislative Determination Of Benefits, Richard S. Brawerman

Michigan Law Review

The California legislature created the Los Angeles Flood Control District, empowered a board of supervisors to construct improvements and acquire property necessary or useful for carrying out the purposes of the act, and provided for the organization of drainage districts within the flood control district. An amendatory act provided that the board of supervisors might accept a transfer of "all, but not less than all," improvements of defined classes lying within the flood control district, whereupon the district should become liable for principal and interest of bonds afterward maturing which had been issued by any drainage district to cover the …


Wanted: A New Definition Of The Rate Base, Paul G. Kauper Jun 1939

Wanted: A New Definition Of The Rate Base, Paul G. Kauper

Michigan Law Review

Public utility problems today have a conspicuous place on the stage of national life. The New Deal's imposing yardstick: program and its policy of encouraging municipal ownership and operation of utility services by means of P.W.A. grants have focused attention chiefly on the issue of public versus private ownership. However, there are indications that a truce between the federal agencies and the private utilities is at hand and that, in consideration of the undertaking on the part of the private utilities to finance capital improvements and additions on a large scale and thereby contribute to general economic improvement, the New …


Taxation-Procedural Devices For Preventing Multiple Taxation Of Intangibles Based On Domicile - Original Suit By Way Of Interpleader Before Supreme Court, Edmund O'Hare Jun 1939

Taxation-Procedural Devices For Preventing Multiple Taxation Of Intangibles Based On Domicile - Original Suit By Way Of Interpleader Before Supreme Court, Edmund O'Hare

Michigan Law Review

The famous Dorrance litigation raised very sharply the problem of avoiding multiple inheritance taxes based upon conflicting claims of domicile. Up to that time it was thought that the right of a state to levy an inheritance tax upon intangible personal property owned by a nonresident decedent had been effectively denied by Farmers Loan & Trust Co. v. Minnesota, Baldwin v. Missouri, and First National Bank of Boston v. Maine. But the Dorrance cases resulted in the collection of huge inheritance taxes by Pennsylvania and New Jersey, both states grounding their assessments upon the assertion that Dr. Dorrance …


Banks And Banking - Liability Of Bank For Payment Of Checks With Improper Signatures - Duty Of Depositor To Inspect Monthly Statements, Michigan Law Review Jun 1939

Banks And Banking - Liability Of Bank For Payment Of Checks With Improper Signatures - Duty Of Depositor To Inspect Monthly Statements, Michigan Law Review

Michigan Law Review

Plaintiff, trustee, a man of banking experience, opened an account with the defendant bank, instructing that only checks signed by him, or by one of his agents, and countersigned by one of two different agents should be honored. Over a period of three years there were numerous departures from the original instructions given to the bank, participated in by the plaintiff as well as by his agents. Two of the agents misappropriated trust funds by cashing checks through defendant bank without the instructed countersignatures, and without knowledge of the plaintiff, but during this period the plaintiff failed to inspect his …


Garnishment - Full Faith And Credit - Nature Of Principal Judgment, John N. Seaman Jun 1939

Garnishment - Full Faith And Credit - Nature Of Principal Judgment, John N. Seaman

Michigan Law Review

Plaintiff, appellee, sued an Illinois insurance company for legal services, and on the same day sued out a writ of garnishment against a Michigan debtor of the insurance company. Two days later the insurance company was dissolved in Illinois under the provisions of the Illinois Insurance Code, and an Illinois liquidator was vested with title to all of the insurance company's property, wherever located. The liquidator intervened in this case, claiming prior title to the garnishment debt, by virtue of the Illinois statute and judicial proceedings. Held, the commencement of the garnishment suit gave plaintiff a lien on the …


Libel And Slander - Privilege Of "Fair And Accurate Report'' Of Judicial Proceedings-Non-Liability Of Vendor Of Newspaper, Ralph E. Helper Jun 1939

Libel And Slander - Privilege Of "Fair And Accurate Report'' Of Judicial Proceedings-Non-Liability Of Vendor Of Newspaper, Ralph E. Helper

Michigan Law Review

Defendant newspaper published a false account of plaintiff's testimony in a criminal trial. In an action for damages for libel against the newspaper and the local distributor of the papers who had no knowledge that libels were contained therein, held (1) privilege to report judicial proceedings applies only to a correct report, even though the inaccuracy be the result of an unintentional mistake; and ( 2) that the vendor is not liable in absence of knowledge that the newspaper contained libelous matter or knowledge of extraneous facts to put him on guard. Bowerman v. Detroit Free Press, 287 Mich. …


Public Utilities - Rates - Constitutionality Of Statutes Prohibiting Minimum Or Service Charges, S. J. Schuman Jun 1939

Public Utilities - Rates - Constitutionality Of Statutes Prohibiting Minimum Or Service Charges, S. J. Schuman

Michigan Law Review

An Oklahoma statute required that the consumer should be charged only for the gas he used as registered on a meter. The inhabitants of a certain town supplied with gas by petitioner were predominantly small consumers so that on a straight-line meter rate they did not pay for the cost of service. An increase in the rate would not solve the difficulty. The company petitioned the commission for authority to impose either a service charge or a minimum charge. The commission denied the petition. Held, that as applied to this particular case, the statute was unconstitutional and the petition …


Taxation - Ad Valorem Taxes - Tax On Gross Earnings As Evasion Of Constitutional Prohibition Of Ad Valorem Taxes, Ward P. Allen Jun 1939

Taxation - Ad Valorem Taxes - Tax On Gross Earnings As Evasion Of Constitutional Prohibition Of Ad Valorem Taxes, Ward P. Allen

Michigan Law Review

An Oklahoma statute imposed a tax of four per cent of the gross earnings of all freight cars owned, rented, leased, or used by any freight line company within the state, giving the state tax commission power to raise or lower the rate so that the tax should be "as nearly as practicable, the equal of the amount of tax such . . . companies would pay if their cars were taxed on an ad valorem basis." Held, although purporting to be measured by gross earnings, the tax is neither a gross earnings tax, nor a specific property tax, …


Taxation-Income Tax-Dealings By Corporation In Its Own Stock, John N. Seaman Jun 1939

Taxation-Income Tax-Dealings By Corporation In Its Own Stock, John N. Seaman

Michigan Law Review

From 1921 to 1929, appellee corporation bought shares of its own stock, not for retirement, but to sustain the market, to increase the number of shareholders by resale in smaller blocks, and for other reasons. This stock was held as treasury stock. In 1929 it was sold by the corporation, at a profit. From 1920 to 1934 the Treasury Regulations exempted the proceeds of such a transaction from income tax, treating the purchase and sale as separate decrease and increase in the capital, and not as resulting in income. But in 1934 the regulation was changed, so as to tax …


United States - Government Corporations - Home Owners' Loan Corporation Not Suable In Tort, John H. Uhl Jun 1939

United States - Government Corporations - Home Owners' Loan Corporation Not Suable In Tort, John H. Uhl

Michigan Law Review

An action was brought in tort for damages sustained in a fall on ice on the sidewalk in front of premises which were in the possession and control of the Home Owners' Loan corporation. The defendant corporation was created under the Home Owners' Loan Act passed by Congress in 1933 which provides that it "shall have authority to sue and to be sued in any court of competent jurisdiction, Federal or State." The corporation moved to dismiss the action, claiming that as an instrumentality of the United States it could not be sued without the consent of Congress and that …


Monthly Periodical Index, Michigan Law Review Jun 1939

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

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


Book Notes, Michigan Law Review Jun 1939

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.


Patents - Right Of Patentee To Restrict Manufacture, Use, And Sale Of Patented Device, Collins E. Brooks May 1939

Patents - Right Of Patentee To Restrict Manufacture, Use, And Sale Of Patented Device, Collins E. Brooks

Michigan Law Review

The patent laws of the United States grant to a patentee the "exclusive right to make, use, and vend the invention or discovery . . . throughout the United States and the Territories thereof . . . . " Much litigation has arisen over the extent of the monopoly thus granted a patentee, but even at this late date it is not too clearly defined. The question came up anew in the case of General Talking Pictures Corp. v. Western Electric Co., where the owner of a patent on a device used in sound reproduction and broadcast reception had …


Bankruptcy-Corporate Reorganization - Fraternal Benefit Society Entitled To Benefits Of Section 77b, Russel T. Walker May 1939

Bankruptcy-Corporate Reorganization - Fraternal Benefit Society Entitled To Benefits Of Section 77b, Russel T. Walker

Michigan Law Review

Plaintiff's right to petition for reorganization under section 77 B of the Bankruptcy Act was challenged on the ground that plaintiff was an "insurance corporation" within the meaning of section 4 of the Bankruptcy Act and therefore excepted from the benefits of the act. Held, that when Congress used the words "insurance corporation" in the Bankruptcy Act, it meant a corporation authorized by the law of its creation to do an insurance business. As Congress knew that the various States had authorized the formation of fraternal benefit societies, described as such in enabling statutes, when Congress passed this statute …


Securities Legislation - Public Utility Holding Company Act Of 1935 - Extension Of Maturity Date As New "Issue", Edmund O'Hare May 1939

Securities Legislation - Public Utility Holding Company Act Of 1935 - Extension Of Maturity Date As New "Issue", Edmund O'Hare

Michigan Law Review

Defendant a public utility holding company, wished to obtain a one year extension of the maturity date of its unsecured "5 1/2 % Convertible Investment Certificates" by inducing the holders thereof to assent to such extension in return for a twenty per cent payment of the principal of each certificate. The Securities and Exchange Commission sued to enjoin defendant from using the mails or other instrumentalities of interstate commerce in carrying out its plan, because defendant had not filed a declaration under section 7 of the Public Utilities Holding Company Act of 1935, in connection with the proposed extension. Held …


Monthly Periodical Index, Michigan Law Review May 1939

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

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


Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin May 1939

Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin

Michigan Law Review

The state of Virginia imposed an income tax upon the income received by a resident of Virginia as beneficiary of a discretionary trust established and administered in New York by a resident of New York, which state had levied and collected an income tax on the entire income of the trust fund. Petitioner protested the payment of the Virginia tax, alleging the taking of property without due process of law and the denial of equal privileges in contravention of the Fourteenth Amendment of the Federal Constitution. Held, that the tax was valid, since it was ascertained by the beneficiary's …


Constitutional Law - Public Utilities - Standing Of Public Utilities To Challenge The Constitutionality Of The Tva, Michigan Law Review May 1939

Constitutional Law - Public Utilities - Standing Of Public Utilities To Challenge The Constitutionality Of The Tva, Michigan Law Review

Michigan Law Review

Eighteen electric utilities, with non-exclusive franchises and in direct competition with the TVA in selling power wholesale to municipalities, cooperatives and large industrial plants, sought to enjoin the activities and projects of the TVA and its directors as being unconstitutional and as contravening their rights under the fifth, ninth, and tenth amendments. Fraud, duress, and misrepresentations in securing customers were charged. A court of three judges dismissed the bill, holding that there was no fraud or duress and that the TVA was constitutional. Fourteen utilities appealed to the United States Supreme Court. Held, with Justices Butler and McReynolds dissenting, …


The Validity Of Corporate Mortgages Executed For Accommodation, Edward O. Curran May 1939

The Validity Of Corporate Mortgages Executed For Accommodation, Edward O. Curran

Michigan Law Review

The problem of the validity of an accommodation mortgage executed by a corporation--that is, a mortgage or pledge of the property or assets of the corporation for the benefit of another without the receipt by the corporate mortgagor or pledgor of any consideration for the loan of its credit--is one which appears not to have been explored by writers on legal topics. No reason is readily apparent for the obvious dearth of discussion on this subject; the pertinent cases are not too numerous for ready collation and the accommodation mortgage device is itself of practical importance in certain situations in …


Constitutional Law - Taxation - Curtailment Of Intergovernmental Tax Immunities, Allan A. Rubin May 1939

Constitutional Law - Taxation - Curtailment Of Intergovernmental Tax Immunities, Allan A. Rubin

Michigan Law Review

In the recent well-publicized decision of Graves v. O'Keefe, the United States Supreme Court, following a path adequately cleared by Helvering v. Gerhardt, again enlarged the scope of the governmental powers to impose non-discriminatory taxes. In so doing, the Court clarified the fundamental principles underlying intergovernmental tax immunities by eliminating inconsistencies and resolving confusion persisting in this field of law. The Gerhardt case had sustained the imposition of a federal income tax on the salaries of employees of the Port of New York Authority, a state instrumentality created by New York and New Jersey. But it had not …


Frauds - Actions - Proper Party Plaintiff, Michigan Law Review May 1939

Frauds - Actions - Proper Party Plaintiff, Michigan Law Review

Michigan Law Review

The American Law Institute Restatement of Torts states that a person injured by a fraudulent representation can recover from the maker only if the maker desired this injured person to rely on the representation. The maker's liability is further limited to those injuries arising from transactions in which the maker desired to influence the injured person.


Taxation - Income Tax - Improvements Made By Lessee As Income To Lessor, Ralph E. Helper May 1939

Taxation - Income Tax - Improvements Made By Lessee As Income To Lessor, Ralph E. Helper

Michigan Law Review

The recent decision of the Supreme Court of the United States in M. E. Blatt Co. v. United States has fairly settled the conflict that has ranged for over twenty years between the Commissioner of Internal Revenue and the Board of Tax Appeals on one side, and the courts on the other. The commissioner's contention that improvements made by a lessee should be taxed as income to the lessor was denied, and by dictum the Court approved the reasoning of Judge Learned Hand in Hewitt Realty Co. v. Commissioner, wherein he said that the judicial concept of "income" did …


Regulation Of Labor Unions And Labor Disputes In France, Rudolf B. Sobernheim, V. Henry Rothschild 2nd May 1939

Regulation Of Labor Unions And Labor Disputes In France, Rudolf B. Sobernheim, V. Henry Rothschild 2nd

Michigan Law Review

In a study of British labor, Andre Philip contrasted what he termed "le Trade Unionisme'' of England with les syndicats professionels of France. So foreign did he deem the British concept of trade unionism to his French readers that, in speaking of British trade unions, he preferred not to use the French term.


Administrative Law - Labor Law - Federal Courts - Equity - Propriety Of Interrogatories Directed To The Members Of The National Labor Relations Board, Michigan Law Review May 1939

Administrative Law - Labor Law - Federal Courts - Equity - Propriety Of Interrogatories Directed To The Members Of The National Labor Relations Board, Michigan Law Review

Michigan Law Review

The National Labor Relations Board brought a proceeding under section 10 of the National Labor Relations Act for the enforcement of an order to cease certain unfair labor practices, its petition stating that the board had considered the case before it and upon all the testimony and evidence made its findings of fact and issued its order. The answer alleged that the board did not consider the evidence but referred it to others for suggested findings of fact, and that with no opportunity to respondent to know of or criticize the suggestions they were adopted by the board without further …