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Michigan Law Review

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State Regulation Of Interstate Motor Carriers, Paul G. Kauper Jun 1933

State Regulation Of Interstate Motor Carriers, Paul G. Kauper

Michigan Law Review

After the decision in Buck v. Kuykendall, the question naturally arose whether a State could require an interstate carrier to obtain a certificate of public convenience and necessity in order to engage in intrastate business. The question is important because it is possible that interstate business cannot be conducted profitably on a given route without the benefit of supplemental earnings derived from intrastate business. No doubt was entertained by state commissions after the Buck case that they could still exercise plenary control over the intrastate operations of interstate carriers, and deny them permission to engage in intrastate business if …


Admiralty-Venue Of Action Brought In State Court Under Jones Act Jun 1933

Admiralty-Venue Of Action Brought In State Court Under Jones Act

Michigan Law Review

The plaintiff brought suit in a county court of Pennsylvania to to recover damages for injuries sustained by her while a member of the steamship crew of the defendant. The action was based on the Merchant Marine Act of 1920 which provided: "Jurisdiction in such actions shall be under the court of the district in which the defendant employer resides or in which his principal office is located." Defendant corporation moved to dismiss the action on the ground that the court had no jurisdiction since defendant's principal office was in Baltimore. The motion was granted and the Pennsylvania Supreme Court …


Appeal And Error - Authentication Of Bills Of Exceptions By Judge's Initials Jun 1933

Appeal And Error - Authentication Of Bills Of Exceptions By Judge's Initials

Michigan Law Review

The records on two appeals contained what purported to be bills of exceptions. The trial judge used only his initials in allowing the bills as follows: "Allowed August 20, 1930, J. A. L., D. J." Held, this was sufficient to satisfy the requirement that a bill of exceptions be signed by the trial judge. Ohl & Co. v. Smith Iron Works (two cases), 53 Sup. Ct. 340, 77 L. ed. 485 (1933).


Appeal And Error - Raising Insufficiency Of Defense For First Time On Appeal Jun 1933

Appeal And Error - Raising Insufficiency Of Defense For First Time On Appeal

Michigan Law Review

In defense to plaintiff's action for wages defendant pleaded facts showing an agreement whereby plaintiff was to accept $4,000 in full satisfaction of her claim. The jury found that no such agreement had been made and rendered a verdict for plaintiff in the sum of $7,500. On appeal by defendant the case was sent back for a new trial because of an error in the admission of evidence offered by plaintiff as to the existence of the alleged agreement. Appellee contended that notwithstanding the error the judgment should be affirmed because the agreement pleaded, even if proved, would not constitute …


Federal Practice - Appeal And Error - Dismissal Of Counterclaim Because Of Improper Venue Appealable As Interlocutory Order Denying Injunction Jun 1933

Federal Practice - Appeal And Error - Dismissal Of Counterclaim Because Of Improper Venue Appealable As Interlocutory Order Denying Injunction

Michigan Law Review

To plaintiffs' suit for patent infringement defendants counterclaimed upon an unrelated patent asking for an injunction and an accounting. Plaintiffs' motion to dismiss on the ground of improper venue was sustained by the district court. Defendants appealed and plaintiffs moved to dismiss on the ground that dismissal of a counterclaim was not a refusal of an injunction and therefore not appealable under Sec. 129, Judicial Code. The circuit court of appeals allowed the appeal and this decision was affirmed by the Supreme Court. General Electric Co. et al. v. Marvel Rare Metals Co. et al., 287 U.S. 430, 53 …


Federal Practice -Venue - Plaintiff's Privilege In Respect To Defendant's Counterclaim On An Unrelated Patent Jun 1933

Federal Practice -Venue - Plaintiff's Privilege In Respect To Defendant's Counterclaim On An Unrelated Patent

Michigan Law Review

Petitioners brought suit in the federal court for the northern district of Ohio against defendant corporations having regular and established places of business in that district and against two individual defendants resident there alleging infringement of patent rights and asking for injunction, damages, and an accounting. Defendants' answer denied infringement and set up a counterclaim based on a patent granted one of the defendants praying for an injunction against infringement and an accounting. Defendants' counterclaim did not allege that petitioners were inhabitants of the district where the counterclaim was to be tried or that they had regular and established places …


Future Interests - Rule Against Perpetuities Applibd To A Charitable Trust Jun 1933

Future Interests - Rule Against Perpetuities Applibd To A Charitable Trust

Michigan Law Review

The testator devised property to a trustee to accumulate the income for the period of a life in being and twenty-one years. Then a corporation was to be organized to receive the fund as trustee in order to apply it to a named charitable purpose. Held, that the gift does not contravene the rule against perpetuities on the grounds that the gift takes effect in possession the instant the prior period ends, that beneficially the gift vests in charity at the death of the testator, and that the rule does not apply to charitable gifts. First Camden National Bank …


Public Utility Valuation - Rate Base Jun 1933

Public Utility Valuation - Rate Base

Michigan Law Review

The California Railroad Commission, in conducting a hearing in 1930 on natural gas rates charged by the Los Angeles Gas and Electric Corporation, found that the "historical value" of the utility was $60,704,000, and that its "fair value" for rate-making purposes was $65,000,000. This fair. value figure included no specific allowance for going concern value. The company's engineers had estimated the fair value at $95,000,000, on the basis of the "present cost of reproduction" theory. The commission, relying on its fair value figure of $65,000,000, ordered a rate reduction. A three-judge federal court refused to enjoin the enforcement of the …


Trusts - For Employees - Definiteness Of Cestui Jun 1933

Trusts - For Employees - Definiteness Of Cestui

Michigan Law Review

The testator by his last will and testament devised a saw mill owned by him to certain trustees, the will reading, "I suggest that my said trustees sell the mill" for a specified price about half the estimated value of the property to a corporation to be organized by "my employees." There was a further provision reading, "I suggest that all the employees who have been in my employment for five years or longer should hold stock in such corporation, should they so desire in such proportions as my trustees shall presence." After the corporation had been organized, the incorporators …


Waters And Watercourses - Extent Of Riparian Land Jun 1933

Waters And Watercourses - Extent Of Riparian Land

Michigan Law Review

The plaintiff, a lower riparian owner, sued the defendant municipality for taking water from a stream in such quantity as to cause serious damage. The complaint alleged. that the defendant purchased land extending to the stream bank in 1927 and 1928, which it later took into its corporate limits, and that thereupon it diverted water to points within its corporate limits but beyond the watershed of the stream. Held, the defendant's demurrer to the complaint was properly overruled. Sayles v. City of Mitchell, (S. D. 1932) 245 N. W. 390.


Book Notes And Notices Jun 1933

Book Notes And Notices

Michigan Law Review

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


Front Matter, Michigan Law Review Jun 1933

Front Matter, Michigan Law Review

Michigan Law Review

Front Matter for Volume 31, Issue 8 of Michigan Law Review


Mortgages - Assignment Of Rents And Profits - Michigan Statute Jun 1933

Mortgages - Assignment Of Rents And Profits - Michigan Statute

Michigan Law Review

There may be times when legislative action is so obviously dependent upon contemporary circumstances, or when its roots lie so near the chronological surface, that no study of background is possible or necessary. Such is not the case, however, with anything relating to mortgage law; it is too deeply imbedded in our legal system. And though its history be familiar it is felt that a brief review will not be out of place in considering a comparatively recent Michigan statute authorizing the assignment of rents and profits.


Waters And Watercourses-Right Of Public Passage Along Great Lakes Beaches Jun 1933

Waters And Watercourses-Right Of Public Passage Along Great Lakes Beaches

Michigan Law Review

May the littoral owner whose summer cottage abuts on one of the Great Lakes bring actions of trespass quare clausum against pedestrians who traverse the sand beach which lies at the aquatic terminus of his property? To state the same problem in different form, may he build a lateral line fence designed to exclude the public from that segment of the lake-side beach which he claims as his? The question has never been directly decided by the supreme court of any State, yet it is a source of constant strife between littoral owners who desire privacy and seclusion, and strolling …


Bankruptcy--Act Of Bankruptcy By Transfer With Intent To Defraud A Creditor With A Non-Provable Claim Jun 1933

Bankruptcy--Act Of Bankruptcy By Transfer With Intent To Defraud A Creditor With A Non-Provable Claim

Michigan Law Review

Petitioner as surety executed a bond to secure the payment of any judgment that might be entered against the principal. The defendant agreed to indemnify the petitioner against any claim or liability arising on the bond. After a verdict was obtained against the principal, but before judgment was entered, the defendant transferred all her estate without consideration and with specific intent on her part to hinder, delay, and defraud petitioner, her only creditor. The petitioner was forced to pay the judgment. Within four months after the fraudulent transfer he filed a bill seeking to have defendant ad judged a bankrupt. …


Banks And Banking - Power To Pledge Assets To Secure Private Depositors Jun 1933

Banks And Banking - Power To Pledge Assets To Secure Private Depositors

Michigan Law Review

Plaintiff railway company deposited funds in the national bank of the defendant receiver. Dissatisfied with the guaranty of his deposits by surety bonds, the plaintiff demanded and received from the bank Liberty Loan Bonds, which were deposited with the trust officer of the bank to be held as security for the repayment, on demand, of the deposits. On the insolvency of the bank, the receiver refused to turn over the bonds, whereupon the plaintiff brought an action on the contract of pledge. Held, that the contract of pledge of the bank's assets to secure the private deposit was invalid …


Bills And Notes - Due Presentment Of Checks When Drawee Is In Same Town Jun 1933

Bills And Notes - Due Presentment Of Checks When Drawee Is In Same Town

Michigan Law Review

The plaintiff, payee of a check, received it on December 1st early enough to present it for payment on that day to the drawee bank which was located in the same town. Instead of presenting it to the drawee directly, he deposited the item in another local bank on December 2d. The latter presented it to the drawee through the clearing house on December 3d, but it was not paid, the drawee having closed its doors the same day. If the check had been presented on December 2d it would have been paid, since there were enough funds in the …


Corporations - Dissenting Stockholder's Suit -Conditional Decree Jun 1933

Corporations - Dissenting Stockholder's Suit -Conditional Decree

Michigan Law Review

The directors and majority stockholders of a Minnesota mining corporation which. needed financing were also the directors and majority stockholders of another Minnesota mining corporation which had a large surplus. They decided to consolidate the two in order to finance the one, offering the stockholders of each corporation a share for share exchange, which would result in the stockholders of the unsuccessful corporation having a 9/16 control of the consolidated corporation. Dissenting stockholders, holding 18/100 of 1% of the total stock in the successful corporation, brought a bill to restrain the consolidation and to have a receiver appointed to take …


Equity- Contempts - Purgation By Sworn Answer - Doctrine Of Variance Jun 1933

Equity- Contempts - Purgation By Sworn Answer - Doctrine Of Variance

Michigan Law Review

At the suit of X Traction Company defendants had been enjoined from operating busses along streets upon which plaintiff operated its cars. The latter .filed an information in the name of the State charging the defendants with wilful violation of the restraining order, and moved for an attachment for contempt, and for the infliction of "such penalties as are or may be necessary to compel observance." Defendants filed motions to discharge, and also answers for the purpose of purging themselves of the alleged contempt. Upon trial, at which evidence was received, the court found defendants guilty, and levied fines. Defendants …


Quasi-Contracts -- Sufficiency Of Technical Benefit Jun 1933

Quasi-Contracts -- Sufficiency Of Technical Benefit

Michigan Law Review

A brokerage house, the R. Co., having purchased stock on margin for the plaintiff, requested a payment of $1100 in order to protect themselves in carrying the account. Doubting the financial stability of R. Co. the plaintiff decided to transfer the account to another firm, the defendant, and accordingly delivered to R. Co. a personal check naming the defendant as payee, at the same time orally directing R. Co. to transfer the stock and check to the defendant and from them receive payment in full. R. Co., however, falsely represented that the check was really theirs and that the plaintiff …


Railroads - Power Of Interstate Commerce Commission To Order Extensions Jun 1933

Railroads - Power Of Interstate Commerce Commission To Order Extensions

Michigan Law Review

After due hearing upon a complaint filed by the Public Service Commission of Oregon asserting a failure to provide adequate transportation facilities to a large and unexploited area within that State, the Interstate Commerce Commission found that public necessity and convenience required the construction of a connecting line 185 miles in length. The Commission also found that the proposed extension, adding 1.2 per cent to the existing mileage of the Union Pacific system and costing approximately $10,000,000, would not seriously affect the ability of that organization adequately to serve the public; and that though the venture might not be profitable …


Trial Practice - Special Appearance To Contest Garnishment Jun 1933

Trial Practice - Special Appearance To Contest Garnishment

Michigan Law Review

The proceeds of an insurance policy payable to the defendant, a non-resident, were attached by garnishment. The defendant, who was served by publication, filed a paper entitled "Special Appearance" to question the jurisdiction of the court over his person and property. The lower court sustained the special appearance on the ground that the proceeds of the policy were exempt from garnishment. Held, that the exemption of the proceeds was not material to the question of jurisdiction in rem, so it should not have been considered on special appearance. Reversed with leave to the defendant to enter a general …


The New Federal Securities Act, John E. Tracy Jun 1933

The New Federal Securities Act, John E. Tracy

Michigan Law Review

A proper understanding of the purposes of this new Act and the reasons for its enactment can probably best be obtained by a short discussion of the manner in which the sale of securities has been regulated prior to this time.


Banks And Banking - Land Contract As Item For Collection Under The Bank Collection Code Jun 1933

Banks And Banking - Land Contract As Item For Collection Under The Bank Collection Code

Michigan Law Review

The petitioner deposited with A Bank a land contract. The bank was to collect payments thereon and remit them to the petitioner. After making two collections amounting to $100, the bank became insolvent and the petitioner sought a preferred claim against all the assets of the bank. The Bank Collection Code (sec. 13 of Act No. 240 of the Public Acts of Michigan, 1931) was the basis of his claim. The trial judge allowed him a preference as to cash assets on hand at the time the receiver took possession. Since it was doubtful whether there would be any cash …


Receivers - Situs Of Pledged Stock For Jurisdictional Purposes Jun 1933

Receivers - Situs Of Pledged Stock For Jurisdictional Purposes

Michigan Law Review

The assets of Insull Utility Investments, Inc., an Illinois corporation, consisted of stock in other Illinois corporations. This stock was pledged to New York banks by the president of Insull Utility in his representative capacity. Upon receivership of Insull Utility in the federal court in Illinois it was found that the equity of redemption in this stock comprised virtually the corporation's entire assets. The stock having depreciated below the amount of the loan secured, the pledgees took action to foreclose their collateral. Since otherwise the unsecured creditors would take nothing, the receiver sought to enjoin the sale until a better …


Torts -Absolute Liability-"Rylands V. Fletcher" Jun 1933

Torts -Absolute Liability-"Rylands V. Fletcher"

Michigan Law Review

The defendant, owner of an 11 acre plot, licensed nomadic caravan dwellers to come on the field and live there. Approximately two to three hundred people were on the land. Some of the group deposited human excrement on the adjoining lands, allowed their horses to trespass upon and foul neighboring lands, were often noisy in returning to the land, and frequently trespassed upon the neighboring land in going to or leaving the plot. Held, in an action for public nuisance, that the defendant was bound to prevent the occupants of his land from committing the acts in question. An …


Torts-Liability Without Fault Jun 1933

Torts-Liability Without Fault

Michigan Law Review

The defendant operated a lawful dry cleaning business employing a very inflamable liquid (varnolene) as a cleaning agent. Through no negligence on the part of the defendant, a considerable amount of varnolene escaped into the drain and found its way to a creek which ran behind the defendant's premises. Here the varnolene was ignited by sparks from a back-firing gasoline engine operated on adjacent property by a third party. The fire spread downstream and damaged a building belonging to the plaintiff. Held, the plaintiff was not entitled to recover. Kaufman v. Boston Dye House, (Mass. 1932) 182 N. …


The Emergency Railroad Transportation Act, 1933, Edwin C. Goddard Jun 1933

The Emergency Railroad Transportation Act, 1933, Edwin C. Goddard

Michigan Law Review

From Munn v. Illinois to the Emergency Railroad Transportation Act of 1933 has been a long journey traveled by the public and the public utilities, notably the largest public utility, the railroads. In 1876 the very term "public utility" was unknown. The idea that the public could break in on laissez faire and regulate any business was to the persons regulated, and to their lawyers, odious. With them agreed Justices Field, Brewer, Peckham, and many another, who predicted that the public would not long tolerate such interference with business. But prophecy is hazardous, and these prophets were wrong.


Criminal Law And Procedure -The Defense Of Entrapment Jun 1933

Criminal Law And Procedure -The Defense Of Entrapment

Michigan Law Review

A government agent, acting incognito, gained the confidence of the defendant by reminiscing over old war experiences. In the course of the conversation the agent repeatedly urged the defendant to secure for him a quantity of liquor. The defendant repeatedly refused, but finally acquiesced. Held, that there had been an entrapment, the court entering into a discussion of the theory of the defense. Sorrells v. United States, (U.S. 1932) 53 Sup. Ct. 210.


Wills And Administration - Jurisdiction Over The Probate Of Lost Or Destroyed Wills Jun 1933

Wills And Administration - Jurisdiction Over The Probate Of Lost Or Destroyed Wills

Michigan Law Review

Under Mich. Comp. Laws (1929), sec. 15547, a will lost, suppressed or destroyed may be admitted to probate upon its being established in a prescribed manner in the probate court. And under sec. 15543 no will is effectual to pass title to property unless probated as required by law. Plaintiff coal company, apparently under the direction of its manager, King, filed a bill of interpleader for a judicial determination as to whether it should pay rent as lessee of certain property to the administrator of the estate of the deceased lessor, or to King, who claimed as devisee of the …