Attorney General ex rel. Ruggles v. Buckley & Douglas Lumber Co.

164 Mich. 625
CourtMichigan Supreme Court
DecidedMarch 13, 1911
DocketDocket No. 51
StatusPublished
Cited by3 cases

This text of 164 Mich. 625 (Attorney General ex rel. Ruggles v. Buckley & Douglas Lumber Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attorney General ex rel. Ruggles v. Buckley & Douglas Lumber Co., 164 Mich. 625 (Mich. 1911).

Opinion

Moore, J.

The respondent corporation was organized in January, 1898, under Act No. 232, Pub. Acts 1885 (2 Comp. Laws, § 7037 et seq.). Its purposes as expressed in its articles are:

■“Thepurchase and sale of lands and timber; the manufacture, purchase, and sale of timber and lumber, and transacting a general manufacturing and lumber business and everything belonging thereto or connected therewith.”

Ever since its organization it has operated a sawmill at Manistee, and been engaged in the manufacture of lumber. In 1895 it erected a salt block, and engaged in the manufacture of salt in connection with the operation of its sawmill, and from that time on has been producing salt. Its investment in the salt plant is approximately $160,000, and its investment in the lumber business outside of the salt business is approximately $1,400,000.

It is the claim of relator that the respondent has no authority to manufacture salt, for the reason that the production and manufacture of salt, as carried on by respondent, is a mining business, and not a manufacturing business, and that a corporation cannot be organized for or conduct a mining business under Act No. 232, Pub. Acts 1885, but should be organized under Act No. 113, Pub. Acts 1877 (2 Comp. Laws, § 6991 et seq.). The attorney general, on the relation of Charles F. Ruggles, filed an information in the nature of quo warranto, by which the court was informed that the respondent was incorporated under Act No. 232, Pub. Acts 1885, and had been and was at the time of filing the information exercising a franchise or privilege not conferred upon it by law, and asking for a judgment of ouster. The trial judge ruled that a corporation incorporated under Act No. 232, Pub. Acts [627]*6271885, and existing under Act No. 333, Pub. Acts 1903, could not lawfully engage in the manufacture of salt, but held that the State, because of the knowledge and acquiescence of the secretary of State and State salt inspector, was estopped to deny respondent’s right to manufacture salt, and was estopped to enforce the law against respondent, and upon that ground he directed a verdict for the respondent.

The contention of relator as stated in the brief of counsel is as follows :

“As there is no disputed fact in the case, we contend not only that the judgment below should be reversed, but that judgment of ouster should be entered in this court. We contend that:
“ (1) The franchise or privilege of producing and selling salt in the manner shown by the information, and admitted by the plea, has never been conferred upon respondent.
“ (3) The State is not estopped by the knowledge and acquiescence of its executive officers from imposing upon respondent the penalties provided by statute for the punishment of a corporation which exercises a franchise or privilege not conferred upon it by law, and diverts its funds to a purpose not specified in its articles of association.
“(3) The knowledge and acquiescence of the private relator and his motive in requesting the attorney general to file the information are immaterial, and constitute no defense to the information.
“ (4) Judgment should be rendered that respondent be dissolved.”

It is the contention of respondent (we quote from the brief )—

That it has a lawful right and authority to engage in and carry on the business of manufacturing salt as it is now organized, for the following reasons:

(1) The production of salt, as carried on by respondent and by other producers of salt in the State of Michigan, is a general manufacturing business, and not a mining business.
(3) The legislature of this State have recognized the [628]*628business of producing salt in this State, as carried on by respondent, as a general manufacturing business, and not a mining business, and have legislated with reference to it as such.
(3) That the relator, through its executive officers, whose duty it is to execute the laws, has by a practical interpretation of said Act No. 232, Pub. Acts 1885, and said Act No. 232, Pub. Acts 1903, ever since their passage, permitted corporations to be organized for the purpose of engaging in the production and manufacture of salt, and permitted them, including respondent, to conduct and carry on the business under those laws, and such acquiescence now binds relator.
(4) Relator is now estopped by its conduct from denying that respondent, as now organized, has a right to carry on the business of manufacturing salt.

At the trial relator submitted the case upon the admissions made in respondent’s plea. Respondent offered in evidence certified copies of the articles of association of 14 corporations, of which the following two are examples:

(1) Saginaw Lumber & Salt Company, incorporated in 1882, for the purpose of—
“ Carrying on and conducting the business of cutting, hauling, driving and running logs and manufacturing the same into lumber and shingles, and into lath, and also for the purpose of manufacturing salt and salt barrels in connection with said manufacture of lumber, and also buying and selling lands, lumber, and salt, and doing a general lumber and salt business.”
(2) Louis Sands Salt & Lumber Company, of Manistee, incorporated in 1905 under Act No. 232, Pub. Acts 1903, to—
“Conduct and carry on a general timber and salt manufacturing business, including logging operations, manufacturing, buying and selling salt, lumber, shingles, lath, staves, heading, ties, posts, tanbark, wood and other forest products; also the buying and selling of logs, timber, coal and general merchandise, and for the purposes of said business to build, purchase, equip, maintain, own and operate sawmills, shingle mills, stave mills, salt blocks, lumber yards, docks, shops, stores, warehouses, steam and tram logging roads, vessels and water craft [629]*629and such, other structures, equipment and appliances as may be necessary or convenient in the conduct of said business.”

The others were of like purport. The last one was: Mershon-Bacon Company, incorporated in 1906, under Act No. 232, Pub. Acts 1903, to—

“Manufacture lumber and salt and to manufacture lumber and forest products into various commodities, and to buy, sell and deal in salt, lumber and forest products and various commodities produced therefrom.”

Respondent also offered in evidence a printed copy of a pamphlet compiled by S. S. Garigues, State salt inspector, and printed by a legislative committee on lumber and salt in 1881. Respondent also offered in evidence printed copies of the annual reports of the State salt inspector for the years 1893 to 1909, inclusive. In the report of the State salt inspector for 1896, it is stated that

“Buckley & Douglas, Manistee, have built a very large plant this season, consisting of both grainer and vacuum pan process, estimated capacity of 2,000 barrels per day.”

In the reports for 1897, 1898, 1899, and 1900 Buckley & Douglas are shown as manufacturers of salt at Manistee; and in all subsequent reports the Buckley & Douglas Lumber Company is so reported.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

People v. Detroit, Grand Haven & Milwaukee Railway Co.
200 N.W. 536 (Michigan Supreme Court, 1924)
Commerce-Guardian Trust & Savings Bank v. State
200 N.W. 267 (Michigan Supreme Court, 1924)
Ruggles v. Buckley & Douglas Lumber Co.
177 N.W. 270 (Michigan Supreme Court, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
164 Mich. 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-general-ex-rel-ruggles-v-buckley-douglas-lumber-co-mich-1911.