American Hide & Leather Co. v. Southern Railway Co.

142 N.E. 200, 310 Ill. 524
CourtIllinois Supreme Court
DecidedDecember 19, 1923
DocketNo. 15449
StatusPublished
Cited by12 cases

This text of 142 N.E. 200 (American Hide & Leather Co. v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Hide & Leather Co. v. Southern Railway Co., 142 N.E. 200, 310 Ill. 524 (Ill. 1923).

Opinion

Mr. Chief Justice Farmer

delivered the opinion of the court:

This action was brought by the American Hide and Leather Company in assumpsit against the Southern Railway Company, in the superior court of Cook county, to recover the value of two car-loads of green hides for which bills of lading were issued to the plaintiff by the defendant at Mt. Vernon, Illinois, June 25, 1920. The bills recite that one car contained 2105 bundles and the other 1908 bundles of salted green hides, to be transported to Chicago. When the cars arrived at their destination they contained but 16 bundles of hides. The remainder of them was never received. The hides were purchased by plaintiff from Max Cornick & Co. at Mt. Vernon. Plaintiff paid Cornick & Co. $23,921.67, relying upon the bills of lading. The hides which reached their destination were worth $98.70, and plaintiff sued to recover the difference between the amount paid Cornick & Co. and the value of the hides received. The court instructed the jury to find the issues for plaintiff and assess its damages at $23,822.97 and rendered judgment on the verdict so returned. Defendant prosecuted an appeal to the Appellate Court, where the judgment was affirmed, and this court granted a writ of certiorari to review the judgment.

The facts are, that some time in June, 1920, plaintiff had some correspondence with Max Cornick & Co., dealers in green hides, about the purchase of a quantity of hides, and sent its agent, Cooper, to Mt. Vernon on June 21. The hides were in the warehouse of Cornick & Co., which was near a side-track of defendant. . Cooper spent three or four days in the warehouse separating, grading and weighing the hides which were to be shipped to plaintiff. They were put up in bundles and loaded by employees of Cornick & Co. on its wagons and driven from the warehouse to the cars they were to be loaded in. They were weighed by Cornick under the observation of plaintiff’s agent, Cooper, before they were removed. Cooper made invoices of the hides, their weight and prices, in the warehouse as they were inspected, graded, weighed and loaded out. These invoices were signed by Cornick & Co. and O. K.’d by Cooper. Cooper did not superintend the loading of the hides into the cars. He saw' the wagons leave the warehouse, drive along the side of the" cars and some hides thrown into them. He saw some hides in the door of one or both cars. After they were hauled away from the warehouse to the cars and ostensibly loaded in them the cars were closed and sealed, the doors were nailed at the bottom and a two-by-four timber spiked behind each of the doors so that they could not be opened without drawing the nails and removing the timbers. They were sealed by defendant’s agent. After that was done Cornick procured two bills of lading from defendant’s agent and exhibited them to Cooper, who thereupon gave Cornick two drafts on plaintiff, one for $12,469.01, the other for $11,452.66, payable at New York and dated June 25, 1920. Cooper retained a duplicate copy of the bills of lading. Cornick attached the drafts, together with the invoices, to the original bills, and they were sent through his bank at Mt. Vernon to a bank in New York for payment by plaintiff. Plaintiff’s cashier, on their presentation, checked the amount of the invoices and bills of lading and thereupon paid the drafts, amounting to $23,921.67.

The suit was begun in Cook county and summons served on defendant by delivering a copy to R. H. Morris, agent of the corporation. Defendant filed a plea to the jurisdiction of the court, alleging Morris was not its agent; that defendant is a railroad corporation organized under the laws of Virginia, having its principal office at Richmond, in that State, and owns, operates and controls a line of railroad running through the counties of Wabash, Edwards, Wayne, Jefferson, Clinton and St. Clair, in the State of Illinois, in each of which it had an agent upon whom process could be served, and that defendant was not found or served with process in Cook county. Plaintiff filed a replication, alleging Morris, at the time of service of process and before, was the agent of defendant and was served in Cook county. That issue was tried before the court without a jury. The court found that issue against defendant and held the service of summons to be sufficient and in accordance with law. The evidence on the issue of jurisdiction was that Morris was employed to solicit freight shipments to be transported in connection with carriers so that the freight would move over defendant’s railroad. He had ten or more stenographers, clerks and soliciting agents employed under him in an office at 35 West Jackson boulevard, Chicago. Their salaries were paid by defendant. It operates a railroad through the State of Illinois from Mt. Carmel to East St. Louis, (about 140 miles,) and no part of which is in Cook county. The name “Southern Railway System” was on the door of the office at 35 West Jackson boulevard. The bills of lading showed they were issued by defendant at Mt. Vernon for transportation of the property described from that place to Chicago, where one of the cars arrived July 13 and the other July 16, and when opened each car contained only eight bundles of hides.

Morris occupied an office of two rooms furnished by defendant, and his salary and the salaries of his assistants were paid by defendant. He was not employed as soliciting agent for any other company. He made no contracts on behalf of defendant, issued no bills of lading, sold no tickets and collected no money for defendant. Defendant insists Morris had no power to exercise any of defendant’s corporate powers and was not an agent within the meaning of section 8 of the Practice act but was a mere employee to solicit business. Reliance is placed on Booz v. Texas and Pacific Railway Co. 250 Ill. 376. In that case service was had on a man as agent of the defendant railroad corporation. A limited appearance was entered and motion to quash the return was made, alleging Pither, the man on whom summons was served, was an employee of one Staley, a soliciting freight agent, and Farnsworth, a soliciting passenger agent, of several foreign railroads, including defendant, operating railroads outside of the State; that all the employees and business were under control of Edward B. Boyd, who was not an officer of the corporation although called assistant to the vice-president; that the only business transacted through the Chicago office by employees there was soliciting shipments over the lines of the corporation and soliciting passengers to purchase tickets to pass over its lines outside the State. This court held that whether Pither was the agent of defendant on whom process was authorized to be served, depended on whether defendant had extended its business into this State so as to be constructively present here and was transacting that business through Pither as agent; that defendant being a foreign corporation could only be served in this State if it was doing business here, and no one would be its agent unless he had power to represent it in the transaction of some part of the business contemplated by its charter. No one in this State could make a contract to bind defendant, and the court said the mere solicitation of business by one who had no other authority did not constitute doing business in this State. Such solicitors were not agents within the meaning of the statute. The court further held the statute was not confined to domestic corporations; that if a foreign corporation is present in this State and has an agent here, process may be served on it.

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Bluebook (online)
142 N.E. 200, 310 Ill. 524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-hide-leather-co-v-southern-railway-co-ill-1923.