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Michigan Law Review

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Admiralty- Loss Of Goods - Statutory Exemption Of Owner Of Vessel From Liability Nov 1933

Admiralty- Loss Of Goods - Statutory Exemption Of Owner Of Vessel From Liability

Michigan Law Review

Through the negligence of the chief engineer in putting new coal on top of old coal in a temporary bunker the steamship Galileo was rendered unseaworthy at the time the voyage commenced, catching fire and sinking. The cargo was lost. The plaintiff, cargo owner, sued the owner-operator or the ship in the federal District Court for southern New York for breach of contract to deliver at destination. On certiorari to the Circuit Court of Appeals the Supreme Court held, in affirming the decree dismissing the libel, that the defendant was relieved from liability under the federal fire statute which …


Carriers - Damages From Preferential Rates Nov 1933

Carriers - Damages From Preferential Rates

Michigan Law Review

The Interstate Commerce Commission held that defendant railroad was discriminating against complainants in forcing them to pay the blanket rate for lumber dealers plus a short-line charge, and made an order to "cease and desist," but further held that the record would not support an award of damages, The Supreme Court of the District of Columbia refused a mandamus to compel the Commission .to award damages, but on appeal the Court of Appeals held that the writ should issue. On certiorari from the United States Supreme Court, held, judgment of Court of Appeals reversed and petition for mandamus denied …


Carriers -Terminal And Carfloat Bridge - Whether "Terminal" Facilities Or "Interchange" Facilities Nov 1933

Carriers -Terminal And Carfloat Bridge - Whether "Terminal" Facilities Or "Interchange" Facilities

Michigan Law Review

The New York Central R. R. brought a suit in admiralty to recover damages to its carfloat No. 37 resulting from a collision occasioned solely by the negligence of the Long Island R. R.'s tug Talisman and those in charge of her. At the time of the collision the carfloat No. 37 was moored in a carfloat bridge of the Long Island's terminal at Long Island City where it had been received in connection with the transportation in interstate commerce of freight cars and freight. The New York Central had received a notice that the Long Island would not be …


Federal Practice - Appeal And Error - Necessity For Findings Of Fact And Conclusions Of Law In Interlocutory Proceedings Nov 1933

Federal Practice - Appeal And Error - Necessity For Findings Of Fact And Conclusions Of Law In Interlocutory Proceedings

Michigan Law Review

The Public Service Commission of Wisconsin issued a temporary order reducing telephone rates, setting forth its reasons and the facts in an elaborate opinion. A temporary restraining order was issued by a federal district court, which was followed by an application for an interlocutory injunction. A hearing on this application was held before three judges who granted an injunction on the same day upon the giving of a bond. Meanwhile the temporary restraining order continued in force. No opinion was rendered other than a general statement in the decree that the Commission's order "would result in the confiscation of the …


Equity - Election Of Remedies - Deceit After Rescission Nov 1933

Equity - Election Of Remedies - Deceit After Rescission

Michigan Law Review

Plaintiff purchaser rescinded a contract of sale on the ground of fraud and sued defendants in a deceit action, alleging as damages a payment made on the purchase price and special expense incurred by reason of making the purchase. Held, recovery for both items of damage will be allowed. Copeland v. Reynolds, (N. H. 1933) 164 Atl. 215.


Mortgages - Necessity Of Making A Lessee A Party To The Foreclosure Of A Prior Mortgage Nov 1933

Mortgages - Necessity Of Making A Lessee A Party To The Foreclosure Of A Prior Mortgage

Michigan Law Review

A mortgagee foreclosed by a bill in equity without making a lessee, under a lease executed subsequent to the mortgage, a party. In a suit by the purchaser at the foreclosure sale to recover rent from the lessee the court held that the foreclosure put an end to the term and the obligation to pay rent notwithstanding the fact that the lessee was not made a party to the foreclosure proceedings. Dolese v. Bellows-Claude Neon Co., 261 Mich. 57,245 N. W. 569 (1932).


Taxation -Income From Irrevocable Funded Insurance Trusts - Constitutionality Of Statute Nov 1933

Taxation -Income From Irrevocable Funded Insurance Trusts - Constitutionality Of Statute

Michigan Law Review

The settlor created irrevocable trusts to pay premiums on policies of insurance issued on his life in favor of irrevocably-named beneficiaries. Held, that sec. 219 (h), Rev. Acts 1924, 1926, making income from trusts taxable to the settlor, is constitutional. Burnet v. Wells, (U. S. 1933) 53 Sup. Ct. 7.61.1


Trust Receipts- Rights As Between The Parties Nov 1933

Trust Receipts- Rights As Between The Parties

Michigan Law Review

The defendant financed purchases of automobiles by plaintiff, a retail dealer, in the following manner. The manufacturer would send the bill of lading and draft on plaintiff to a bank acting as agent for defendant. The bank would advance the amount of the draft and deliver the bill of lading to plaintiff, taking a trust receipt on the cars. This trust receipt recited that defendant was the owner of the automobiles and might retake possession at any time. On breach of the agreement, defendant retook possession of the cars with plaintiff's consent and thereafter sold them without plaintiff's knowledge. Plaintiff …


Fixtures - Fraud As Basis Of Implied Contract To Retain Status Of Personal Ty After Annexation Nov 1933

Fixtures - Fraud As Basis Of Implied Contract To Retain Status Of Personal Ty After Annexation

Michigan Law Review

S, owner of a farm upon which the defendant held a first mortgage, purchased from the plaintiff, a lumber dealer, building material for the definite purpose of constructing a substantial barn upon the farm. Plaintiff was induced to make the sale in reliance upon fraudulent representations made by S. After the barn was built the plaintiff discovered the fraud. He then brought suit to establish his right to remove the barn, contending that the fraud constituted an implied agreement that the building was to be personal property. Held that, under the circumstances, as a matter of law the …


Taxation - Property Subject To Inheritance Tax - Effect Of Reservation Of Life Income Nov 1933

Taxation - Property Subject To Inheritance Tax - Effect Of Reservation Of Life Income

Michigan Law Review

A father conveyed real estate to his daughter three years before his death by warranty deeds, absolute on their face but with the oral understanding that the father was to have all the income from the property during his lifetime. In a letter which the daughter wrote to her father several years later the terms of this oral agreement are given, but this letter, set forth in the statement of facts, is apparently not relied on by the court since no mention of it is made in the opinion. Held, that the gift was taxable under the inheritance tax …


State Taxation Of Interstate Motor Carriers, Paul G. Kauper Nov 1933

State Taxation Of Interstate Motor Carriers, Paul G. Kauper

Michigan Law Review

Although in point of years motor carrier transportation is in .ll. its infant stage, it has exhibited such prodigious growth as to take rank today as a business of huge proportions. In 1932 there were in the United States about 40,000 motor vehicles engaged in common carrier passenger service. Their operations for the year produced a gross revenue of $348,000,000, as compared with $612,000,000, produced by electric railway passenger operations, and $376,000,000, produced by steam railroad passenger operations.


Constitutional Law - Price Fixing - Emergency Legislation, Maurice S. Culp Nov 1933

Constitutional Law - Price Fixing - Emergency Legislation, Maurice S. Culp

Michigan Law Review

The way of governmental price regulation has been hard, and such regulation has been carefully confined to businesses clothed with a "public interest." An exception has been recognized where an "emergency" occurs in a business outside of the strict utility field. However, the apparent disruption of the competitive system during the present depression has been productive of legislation seeking to overcome the evils of that system. In People v. Nebbia, the Court of Appeals of New York sustained a recent act of the legislature creating a milk control Board and authorizing the fixing of milk prices for a 12-month …


Constitutional Law-Mortgage Foreclosure Moratorium Statutes Nov 1933

Constitutional Law-Mortgage Foreclosure Moratorium Statutes

Michigan Law Review

The present economic crisis has been productive of much drastic legislation which is directed at the relief of the debtor class. Rather than let the depression run its course, legislative bodies have endeavored to alleviate some of the evils by so-called "emergency'' statutes. A common type of such enactment is that designed to protect mortgagors against foreclosure and sale of their property. Some of these statutes provide that the period of redemption after foreclosure sale shall be extended for a definite period, others that the courts may stay foreclosures, and some provide that there shall be no foreclosure sales unless …


Banks And Banking -Trust Funds - Deposits For A Special Purpose Nov 1933

Banks And Banking -Trust Funds - Deposits For A Special Purpose

Michigan Law Review

Plaintiff had an arrangement with defendant bank whereby receipts of certain of plaintiff's branch stores were to be deposited daily with defendant, and the latter was to transmit each day by draft to a bank in Pittsburgh for plaintiff's credit all sums in excess of a dormant balance of $2,000. Drafts covering two days' deposits were in process of transmission to the Pittsburgh bank when defendant bank was taken over by the Comptroller of the Currency. The deposits represented by these drafts were made at a time when defendant's officers and directors knew the bank to be insolvent, though negotiations …


Constitutional Law -Interstate Commerce -Navigable Waters -Validity Of Federal Water Power Act Nov 1933

Constitutional Law -Interstate Commerce -Navigable Waters -Validity Of Federal Water Power Act

Michigan Law Review

The Federal Power Commission found that the plaintiff's proposed hydroelectric development on the non-navigable New river in Virginia would affect interstate commerce on the navigable Kanawha river to which the New river was tributary. The Commission thereupon tendered the plaintiff a standard or major form license for the project. Such a license, had it been accepted by the plaintiff, would have subjected it to all the provisions of the Federal Water Power Act of 1920, including those concerning the regulation of rates, issuance of securities, expropriation of excess profits, amortization reserves, and recapture at the end of fifty years on …


Contracts - Duration Of Employment When No Time Is Specified Nov 1933

Contracts - Duration Of Employment When No Time Is Specified

Michigan Law Review

The plaintiff, claiming a contract from year to year, sued to recover for the unexpired portion of the second year of his employment which defendant had terminated. The offer, made and accepted by mail, was for "the position of General Sales Manager at a salary of $15,000 per year to begin with . . . . " It further appeared that plaintiff had moved from New York to Milwaukee, that he had been making more money per year prior to this employment, and that payment by defendant had been made monthly. Held, that the hiring was indefinite and terminable …


Corporations - Pre-Emptive Rights In Treasury Shares Nov 1933

Corporations - Pre-Emptive Rights In Treasury Shares

Michigan Law Review

Plaintiff, a former shareholder, sued the directors of a corporation for damages arising out of their alleged refusal to allow him pre-emptive rights in stock that had been issued, re-purchased by the corporation from the shareholders, and re-issued by the defendant-directors to themselves. Upon appeal from an order dismissing the complaint for insufficiency, held, that the order be reversed on the law. Hammer v. Werner, (App. Div. 1933) 265 N. Y. S. 172.


Equity- Declaratory Judgment -Injunction To Protect Right In Easement Nov 1933

Equity- Declaratory Judgment -Injunction To Protect Right In Easement

Michigan Law Review

Defendant owned a piece of land in a city block, and plaintiff owned an ad joining piece of land together with an easement for light and air upon a contiguous strip of defendant's land 4 feet wide and 90 feet long. Plaintiff's land alongside the strip was vacant, and he had no immediate intention of building thereon. Defendant erected an office building on his land, constructing an outside stairway on the 4 x 90 foot strip. Plaintiff asked for a mandatory injunction compelling defendant to remove the stairway, stating in his argument before the court that though he had no …


Federal Practice - Appeal And Error - Single Appeal From State Court Involving Consolidated Suits Nov 1933

Federal Practice - Appeal And Error - Single Appeal From State Court Involving Consolidated Suits

Michigan Law Review

Three national banks brought separate suits in a state court against the same defendants to annul a tax assessment, claiming that the act authorizing such assessment violated a federal statute. The suits were consolidated for the trial of this main issue but a separate judgment was rendered in favor of each bank. The defendants took three separate appeals to the state supreme court, but only one transcript was sent up and the appeals were docketed and argued as one case. In a single opinion the court annulled the judgments appealed from. The plaintiffs took a single appeal to the Supreme …


Receivers-Provability Of Debts Owed By Insolvent Subsidiary To Parent Corporation Nov 1933

Receivers-Provability Of Debts Owed By Insolvent Subsidiary To Parent Corporation

Michigan Law Review

The defendant, a Massachusetts corporation, was organized by the plaintiff corporation in order to enable the latter to extend its line of railroad into Massachusetts. The plaintiff corporation owned the entire stock of the defendant company; all the money used by the defendant was advanced by the plaintiff; the management structures of the two corporations were practically the same, a majority of the directors and the principal officers of the one company occupying a like position with the other; the books of account of both companies were kept in the office of the plaintiff by its accountants - in short, …


Taxation Of Trust Estates-Reservation Of Life Income Nov 1933

Taxation Of Trust Estates-Reservation Of Life Income

Michigan Law Review

Settlor executed a deed of trust, retaining a life income, but no power of revocation. Held, that the State of Connecticut could tax the transfer as a gift to take effect in possession or enjoyment at or after death without violating the federal constitution. Guaranty Trust Co. of New York v. Blodgett, (U.S. 1933) 53 Sup. Ct. 244.


Criminal Law In Action- Carrying Concealed Weapons - Chicago Statistics, John Barker Waite Nov 1933

Criminal Law In Action- Carrying Concealed Weapons - Chicago Statistics, John Barker Waite

Michigan Law Review

Lawyers are beginning to recognize, though slowly, that enforcement and administration of law are affected more by the psychological conditioning and the character of its administrators than by the content of the law itself. This basis of difference is well demonstrated by some data of Chicago criminal court operations as compared with similar proceedings before Detroit judges.


Bankruptcy - Suspension Of State Statutes Regulating General Assignments Nov 1933

Bankruptcy - Suspension Of State Statutes Regulating General Assignments

Michigan Law Review

An insolvent debtor made a voluntary assignment of. all his property to the defendants for the benefit of his creditors. The plaintiff, a nonassenting creditor, brought garnishment proceedings against the defendants, contending that the state statute governing general assignments had been suspended by the National Bankruptcy Act. The Wisconsin Supreme Court was of the opinion that only that portion of the Act which provides for a discharge of the assignor from his debts was suspended. On appeal to the United-States Supreme Court the decision was affirmed. Pobreslo v. Joseph M. Boyd Co., 287 U. S. 518, 53 Sup. …


Constitutional Law--- Status Of Courts Of District Of Columbia Nov 1933

Constitutional Law--- Status Of Courts Of District Of Columbia

Michigan Law Review

Plaintiffs, justices of District of Columbia courts, protested the application by the Comptroller-General of an Act of Congress reducing their salaries, alleging that they felt it their duty to have the status of these courts defined. The majority of the Court, answering questions certified by the Court of Claims; held that section l of Article III of the federal constitution applied to the Supreme Court of the District of Columbia and to the Court of Appeals of the District of Columbia, and forbade a reduction of the compensation of the justices thereof during their continuance in office, on the theory …


International Law - Validity Of Soviet Decrees Nov 1933

International Law - Validity Of Soviet Decrees

Michigan Law Review

The Soviet government, by a nationalization decree, confiscated all oil lands in Russia, among them the land of plaintiffs, Russian nationals, and sold oil extracted therefrom to defendant. Plaintiffs sought an accounting, claiming that the confiscatory decrees of the unrecognized Soviet government and seizure of oil lands thereunder had no legal effect. A communication from the State Department was introduced: "The Department of State is cognizant of the fact that the Soviet regime is exercising control and power in territory of the former Russian Empire and the Department of State has no disposition to ignore that fact. The refusal of …


Contracts - Conditional Sales - Effect Of Oral Promise To Insure Nov 1933

Contracts - Conditional Sales - Effect Of Oral Promise To Insure

Michigan Law Review

The plaintiff purchased from the defendant five automobile conditional sales contracts, the defendant guaranteeing the payment of all unpaid installments. The automobiles, which had been sold to third parties on these contracts, were subsequently repossessed when the purchasers defaulted in their payments. It was agreed in writing by the plaintiff and the defendant that the defendant should have possession of the automobiles and should assume all risk of loss or injury, but that title should remain in the plaintiff. Later the parties discussed the advisability of insuring the automobiles, and the plaintiff told the defendant not to have them insured …


Book Notes Nov 1933

Book Notes

Michigan Law Review

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


Alternative Parties And The Common Law Hangover, Dale E. Bennett Nov 1933

Alternative Parties And The Common Law Hangover, Dale E. Bennett

Michigan Law Review

Professor Edson R. Sunderland stated in 1920 that a glaring failure chargeable to the legal profession in America was "its ignorance and indifference to improvements in procedural practice developed in other jurisdictions," pointing out that while discoveries by foreign scholars in the field of medicine were eagerly accepted, similar innovations in the field of law were uniformly ignored regardless of merit. Such apathy is largely attributable to the legislatures, but the courts cannot be given an entirely clean bill of health, for attempted procedural reforms have often been nullified, in whole or in part, by technical construction and an attempted …


Federal Anti-Trust Law And The National Industrial Recovery Act, Howard E. Wahrenbrock Jun 1933

Federal Anti-Trust Law And The National Industrial Recovery Act, Howard E. Wahrenbrock

Michigan Law Review

The economic struggle for existence - the competitive system - which has been principally depended upon to equate the production and consumption of economic goods, is not self-sustaining. Extreme forms of that struggle - engrossing, forestalling, regrating, contracts in restraint of trade, monopoly, unfair competition, to mention some forms at the higher stages of legal development - have had to be restrained by law. Their restriction has been called for to protect the poor and economically weak from oppression by the rich and economically powerful; under a system of complete laissez faire, competition would bring about the elimination of the …


Executive Power In Emergencies, Maurice S. Culp Jun 1933

Executive Power In Emergencies, Maurice S. Culp

Michigan Law Review

The events of the last few months indicate that the American chief executive is capable of vigorous action in emergencies. The executive frequently has to use the armed forces of the State or Nation in the performance of his duty to see that the laws are faithfully executed in troubled districts, but it is a new experience to have the governors and the President take emergency measures in combatting a depression. The banking crisis, which first received executive notice in Nevada last November and which attained alarming proportions with Governor Comstock's "bank holiday" in Michigan, culminated in the national holiday …