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Michigan Law Review

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Book Notes, Michigan Law Review Feb 1937

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.


The Proposed United States Administrative Court, Part Ii, Robert M. Cooper Feb 1937

The Proposed United States Administrative Court, Part Ii, Robert M. Cooper

Michigan Law Review

The recent movement for the passage of the Logan bill and the establishment of supervisory tribunals for the control of administrative determinations is the result of several preconceived theories concerning the shortcomings of the present system of administrative justice. These underlying theories, cautiously surrounded by a halo of judicial philosophy, have seldom been analyzed in their relation to the development of a sound policy for the administration of governmental functions. The present installment of this article will be devoted first to an examination of these fundamental theories and a consideration of the question how far the present administrative machinery is …


Declaratory Judgments - Justiciable Controversy, Herman J. Bloom Feb 1937

Declaratory Judgments - Justiciable Controversy, Herman J. Bloom

Michigan Law Review

The governor of Wisconsin instituted a declaratory proceeding against the secretary of state. The governor wanted to determine his power to make ad interim appointments to allegedly vacant statutory offices and to positions incumbents were holding over. Prior to this action he had made no appointments to these offices, for the secretary of state had advised him that he would not honor the commissions, or audit and pay the expense account of such appointees. The governor claimed that the alleged conduct of the secretary of state prevented him from securing suitable persons to fill these offices. The court held that …


Constitutional Law - Zoning Ordinances Prohibiting Repair Of Existing Structures, William F. Fratcher Feb 1937

Constitutional Law - Zoning Ordinances Prohibiting Repair Of Existing Structures, William F. Fratcher

Michigan Law Review

The rapid development and expansion of the zoning movement during the last ten years has been directed mainly toward guiding new construction in accordance with modern ideals of city planning. There has been, however, a concomitant attempt to restrict the use and repair of existing structures which, if built after its passage, would not conform to the provisions of the zoning ordinance. This at first glance may seem only an insignificant part of the whole zoning problem. But when it is considered, from the point of view of city planners, that it is nearly impossible to make a high grade. …


Insurance - Life Insurance -Waiver Of Premiums During Disability, Charles W. Allen Feb 1937

Insurance - Life Insurance -Waiver Of Premiums During Disability, Charles W. Allen

Michigan Law Review

Action by guardian of the insured, who had become insane, for disability benefits under a life insurance policy and for a decree that the policy had not lapsed. The policy contained a typical provision for waiver of premiums and benefit payments during disability. No proof of disability was made until after default in premium payments. Held, that the insured's insanity did not excuse the failure to make proof before default and the policy had lapsed. Reingold v. New York Life Ins. Co., (C. C. A. 9th, 1936) 85 F. (2d) 776.


Stockholders' Suits: A Possible Substitute, Harris Berlack Feb 1937

Stockholders' Suits: A Possible Substitute, Harris Berlack

Michigan Law Review

With the rapid expansion in the use of the corporate form of organization for business enterprise which has taken place during the last few decades, increasing attention has been paid by legal scholars to the question of the respective positions, rights and duties of the various components of the corporate structure. The functions, rights, obligations and liabilities of managers, officers, directors and stockholders, both majority and minority, have been analyzed and defined. Mr. Berle's analysis of corporate authority as power held in trust for the benefit of the stockholders has found wide acceptance as a comprehensive synthesis of the conclusions …


Front Matter, Michigan Law Review Feb 1937

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 35, Issue 4 of Michigan Law Review


Constitutional Law -- Interstate Commerce -- Validity Of Federal Statute Prohibiting Interstate Shipment Of Prison-Made Goods, Joseph H. Mueller Feb 1937

Constitutional Law -- Interstate Commerce -- Validity Of Federal Statute Prohibiting Interstate Shipment Of Prison-Made Goods, Joseph H. Mueller

Michigan Law Review

The recent decision of the Supreme Court in Kentucky Whip & Collar Co. v. Illinois Central R. R., provides an effective method of circumventing the doctrine of Hammer v. Dagenhart, which held that Congress may not prohibit the interstate transportation of commodities which are harmless except for their economic effect in the state of destination. It is hailed by the advocates of reform as furnishing an avenue of approach to such problems as the regulation of minimum wages and hours and child labor.


Corporations - Charter Amendments - Delaware Dilemma, Michigan Law Review Feb 1937

Corporations - Charter Amendments - Delaware Dilemma, Michigan Law Review

Michigan Law Review

It may be conceded that a corporate charter is a contract having a threefold aspect as to the combinations of parties thereto, and that this contract, as between the corporation and the state, may be changed by the state without conflict with the Federal Constitution, providing the state has reserved a power to change. It still is an ever present problem, however, as to how far the state may affect the contracts of stockholders, either inter se or with the corporation. This problem is particularly a live one in Delaware, both because of the recent Keller case and the large …


Bankruptcy - Corporate Reorganization Plan - Fairness And Feasibility, Erwin S. Simon Feb 1937

Bankruptcy - Corporate Reorganization Plan - Fairness And Feasibility, Erwin S. Simon

Michigan Law Review

The corporation, having assets of $295,000 and liabilities of $1,200,000, petitioned for reorganization under Section 77B of the Bankruptcy Act and presented a plan. The district court's dismissal of the debtor's petition was affirmed in the circuit court of appeals on the grounds that the plan offered was incomprehensible, that the appraisal required by the plan was unjust since the value and validity of the bonds had been found in the equity receivership, and that subsection (b)(5) of 77B was unconstitutional, the attempt to bind non-assenting creditors being a denial of due process. Certiorari was granted by the Supreme Court. …


Contracts - Fraud - Defrauded Purchaser Of Land On Contract, Jacob L. Keidan Feb 1937

Contracts - Fraud - Defrauded Purchaser Of Land On Contract, Jacob L. Keidan

Michigan Law Review

Defendant filed a counterclaim for damages for deceit in an action brought by the vendor in a land contract. The facts showed that substantial payments had been made both before and after defendant's discovery of the fraud. The court held that defendant's performance of the contract subsequent to his discovery of the fraud constituted a "waiver" of the fraud. Monroe v. Hoffman, 276 Mich. 281, 267 N. W. 836 (1936).


Constitutional Law-Resale Price Maintenance -Fair Trade Acts, Joseph H. Mueller Feb 1937

Constitutional Law-Resale Price Maintenance -Fair Trade Acts, Joseph H. Mueller

Michigan Law Review

Four cases upholding the validity of the California and Illinois Fair Trade Acts were recently sustained by the United States Supreme Court. All four cases involved a similar set of facts. Plaintiffs, the owners or authorized distributors of certain well known trade-marked articles, entered into a series of contracts with wholesalers and retailers fixing the resale prices of their branded products. When defendants, certain retailers who had refused to enter into such agreements, persisted in reselling the articles below the prices stipulated in the contracts with other retailers, plaintiffs sued to enjoin them under the provisions of the state Fair …


Municipal Corporations - Constitutional Limitation On Indebtedness - Delinquent Taxes As Deductible Asset, Emma Rae Mann Feb 1937

Municipal Corporations - Constitutional Limitation On Indebtedness - Delinquent Taxes As Deductible Asset, Emma Rae Mann

Michigan Law Review

Plaintiff taxpayer sued to enjoin defendant city from borrowing $500,000 for general public improvements, alleging that if, the city so obligated itself it would be indebted beyond the limit fixed by the constitution at two per cent of the assessed valuation of taxable property. Defendant showed that such limit would not be exceeded if two-thirds of the outstanding delinquent taxes were regarded as deductible. The court denied the injunction and held that since collection of at least two-thirds of such outstanding delinquent taxes was certain this item was properly deductible. Ward v. Pittsburgh, 321 Pa. 414, 184 A. 240 …


Monthly Periodical Index, Michigan Law Review Feb 1937

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

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


Attorney And Client - Unlawful Practice Before Industrial Commission In Workmen's Compensation Proceedings, Charles R. Moon Jr. Jan 1937

Attorney And Client - Unlawful Practice Before Industrial Commission In Workmen's Compensation Proceedings, Charles R. Moon Jr.

Michigan Law Review

In forty-four states of the Union and in Alaska, Porto Rico, Hawaii, and the Philippine Islands there are workmen's compensation acts. A great majority of these acts provide for a board or commission to settle all disputes as to compensation. Practice before these boards and commissions has become a large share of the business of many lawyers and of many law firms. To them, in particular, and to the legal profession, in general, the question raised in the recent case of Goodman v. Beall is of considerable interest. In this case, suit was brought by a committee of the Ohio …


Trusts - Judicial Supervision Of The Administration Of Trusts, Victor P. Kayser Jan 1937

Trusts - Judicial Supervision Of The Administration Of Trusts, Victor P. Kayser

Michigan Law Review

The last few years have witnessed an increasing tendency to use both the testamentary and inter vivos trust as a means for the distribution of estates. Since this results in an avoidance of the normal procedure of probate and administration and of supervision by the probate court, it becomes pertinent to inquire as to the extent to which the administration of trusts is subject to judicial control.


Monthly Periodical Index, Michigan Law Review Jan 1937

Monthly Periodical Index, Michigan Law Review

Michigan Law Review

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


Corporations - Parent's Liability For Subsidiary's Obligations, Michigan Law Review Jan 1937

Corporations - Parent's Liability For Subsidiary's Obligations, Michigan Law Review

Michigan Law Review

A parent corporation owned all the stock of a subsidiary which it had organized to hold real estate, its own business being mercantile. The directors and officers of both corporations were identical. The subsidiary sublet premises for ninety-nine years, in turn leasing them to the parent for ten years. Improvements were made in accordance with the subsidiary's contract, and "leasehold trust certificates" were issued by an assignee of the underlying lease. The parent quit the premises before the expiration of its lease, but paid the rent for the whole period. The subsidiary then defaulted on the ninety-nine year lease, having …


Constitutional Law - Federal Criminal Procedure - Short Form Indictment, James H. Roberton Jan 1937

Constitutional Law - Federal Criminal Procedure - Short Form Indictment, James H. Roberton

Michigan Law Review

It is the purpose of this comment to discuss the validity under the Federal Constitution of an indictment, drawn in accordance with the proposed code, which would merely accuse the defendant of having committed some kind of "offense," and would leave the particulars of the offense to a bill of particulars.


Automobiles - Statutory Liability Of Owner - Registered Titleholder Estopped To Deny Ownership, Michigan Law Review Jan 1937

Automobiles - Statutory Liability Of Owner - Registered Titleholder Estopped To Deny Ownership, Michigan Law Review

Michigan Law Review

Plaintiffs, injured in New York by an automobile driven by defendant's minor son, sued under a New York statute which makes the owner of an automobile liable for damages for injuries resulting from negligence of its operator. The automobile was registered in Connecticut in defendant's name to avoid compliance with the Connecticut statute which requires proof of financial responsibility as a prerequisite of registration for minors over sixteen years of age. Held, defendant estopped to prove ownership of the automobile in his son. Shuba v. Greendonner, 271 N. Y. 189, 2 N. E. (2d) 536 (1936), reversing 245 …


Trials-Right To "Public Trial"-Power Of Judge To Exclude General Public, Francis T. Goheen Jan 1937

Trials-Right To "Public Trial"-Power Of Judge To Exclude General Public, Francis T. Goheen

Michigan Law Review

Convinced of the desirability of such action, a judge, conducting the trial of a criminal case, wishes to clear the court room of all or a portion of the spectators. To what extent may he legitimately do so? He is necessarily limited by the provision in the constitution of almost every state and in the Sixth Amendment of the Constitution of the United States that in "all criminal prosecutions the accused shall enjoy the right to a speedy and public trial." The extent to which the trial court may go in clearing the court room has been most often tested …


Corporations - Common Board - Fraud - Ratification By Majority Stockholders, Theodore R. Vogt Jan 1937

Corporations - Common Board - Fraud - Ratification By Majority Stockholders, Theodore R. Vogt

Michigan Law Review

Defendants were directors and officers of a managing corporation and its subsidiary. Both corporations paid defendants salaries, those from the managing corporation approximating the fees paid to it by the subsidiary for management services which were rendered by defendants. Held, payment of management fees by the subsidiary under such circumstances is fraudulent and recoverable from defendants, in a derivative suit by minority stockholders, despite a resolution of the majority stockholders of the subsidiary ratifying the payment. Eshleman v. Keenan, (Del. Ch. 1936) 187 A. 25.


Constitutional Law-Prohibition Of Advertisement Of Prices By Barbers - Improper Police Regulation - Denial Of Freedom Of Speech, Elbridge D. Phelps Jan 1937

Constitutional Law-Prohibition Of Advertisement Of Prices By Barbers - Improper Police Regulation - Denial Of Freedom Of Speech, Elbridge D. Phelps

Michigan Law Review

Defendant was convicted of violating an ordinance of the City of Long Beach. That ordinance related exclusively to the barber trade and made it a misdemeanor, punishable by fine or imprisonment or both, to advertise prices of services in any publication, handbill, or notice whatsoever, provided, however, that prices might be displayed within a barber shop in such manner as not to be visible from the outside, and provided further that no advertising of prices should be allowed on the windows or on the outside of the shop, or on the adjacent sidewalk or street. Held, the ordinance was …


Contempt - Suppression Order - Publication Of Contents Of Suppressed File, Milton M. Howard Jan 1937

Contempt - Suppression Order - Publication Of Contents Of Suppressed File, Milton M. Howard

Michigan Law Review

On a bill of complaint being filed in chancery court an injunction was issued against the defendant therein, and the papers in the cause were ordered suppressed by the chancellor, and to that end, sealed in an envelope. The bill alleged misrepresentation on the part of a leading banker in getting stockholders to contribute toward making up the defalcations of other officers in the bank and malfeasance of other officers. Defendant newspaper reporter obtained information relative to the allegations in the bill from sources other than the suppressed file and published the same nine months later. Upon citation for contempt, …


Taxation-Proceeding Before United States Board Of Tax Appeals -Validity Of Subpoena Duces Tecum - Unreasonable Search And Seizure, Royal E. Thompson Jan 1937

Taxation-Proceeding Before United States Board Of Tax Appeals -Validity Of Subpoena Duces Tecum - Unreasonable Search And Seizure, Royal E. Thompson

Michigan Law Review

In a proceeding for judicial process to compel defendant to obey a subpoena duces tecum issued by the United States Board of Tax Appeals, defendant asserted that the documents called for were irrelevant to the issue involved, and that the subpoena was a violation of the Fourth Amendment to the Federal Constitution. Held, a witness is not entitled to resist a subpoena for mere incompetency or irrelevancy. To question admissibility, the papers must be so manifestly irrelevant as to make it plain that it is a mere "fishing expedition." One paragraph of the subpoena was declared invalid, as lacking …


Taxation-Validity Of Tax On Income Of Superintendent Of School Cafeteria System -Sovereign Immunity, Elbridge D. Phelps Jan 1937

Taxation-Validity Of Tax On Income Of Superintendent Of School Cafeteria System -Sovereign Immunity, Elbridge D. Phelps

Michigan Law Review

Petitioners, husband and wife, residents of Texas, made returns of community income for the year 1932, listing as exempt the salary of the wife who was superintendent of a non-profit cafeteria system operated by the Ft. Worth public schools for the exclusive patronage and benefit of teachers and students. The Commissioner of Internal Revenue refused the exemption and levied a deficiency tax of $105. On appeal from an affirmance of the commissioner's decision by the Board of Tax Appeals, held, reversed on the ground that the operation of the cafeteria system was a proper exercise of a governmental function …


Book Notes, Michigan Law Review Jan 1937

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.


Commission Jurisdiction Over Utility Cooperatives, Israel Packel Jan 1937

Commission Jurisdiction Over Utility Cooperatives, Israel Packel

Michigan Law Review

A group of farmers desire electricity. They propose to form a cooperative, to borrow money and to construct electric distribution lines. They probably will incorporate the cooperative as a stock or non-stock corporation in order to obtain the benefit of limited liability. The cooperative might be formed under a statute specifically enacted to authorize the formation of cooperatives or under a general incorporation statute. Normally, the charter of the cooperative will provide for equality in control by the members or shareholders and for a limited return or no return on capital investment. The cooperative will probably apply to the Federal …


Section 77b, The Chandler Bill And Other Proposed Revisions, John Gerdes Jan 1937

Section 77b, The Chandler Bill And Other Proposed Revisions, John Gerdes

Michigan Law Review

Section 77B of the Bankruptcy Act has been in effect since June 7, 1934. Its novelty and recognized importance in the field of corporate reorganizations have aroused great interest and wide discussion. The attention which it has received has brought to the fore criticisms of many aspects of the statute.


Front Matter, Michigan Law Review Jan 1937

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 35, Issue 3 of Michigan Law Review