Attorney General ex rel. Wolverine Fish Co. v. A. Booth & Co.

143 Mich. 89
CourtMichigan Supreme Court
DecidedMarch 5, 1906
DocketCalendar No. 20,897
StatusPublished
Cited by22 cases

This text of 143 Mich. 89 (Attorney General ex rel. Wolverine Fish Co. v. A. Booth & 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. Wolverine Fish Co. v. A. Booth & Co., 143 Mich. 89 (Mich. 1906).

Opinion

Hooker, J.

In the information in the nature of quo warranto, filed in this court by the attorney general, upon the relation of the Wolverine Fish Company, Limited, a [92]*92Michigan copartnership, the defendant is alleged to be a corporation, organized under the laws of the State of Illinois, and is therein-charged with having, at. the city of Detroit for the period of six months prior to the filing of said information, unlawfully used without authority, warrant, grant, or charter, the following-“liberties, privileges, and franchises,” to wit, “ that of being a body corporate and politic in law, fact, and name, by the name of A. Booth & Company, and by the same name to plead and be impleaded, answer and be answered unto;” also “that of doing business in this State, and of exercising the powers, franchises, and functions of a corporation in this State.” The information prays due process of law, that said respondent answer “by what warrant it claims to have, use, and enjoy the liberties and franchises aforesaid.” The printed record omits the process and proof of service by which the respondent was brought in. Presumably it was by the usual method.

The respondent came in by counsel, and filed its pleas, in which it alleged:

1. Its lawful incorporation under the laws of Illinois.

2. That, under the Constitution and laws of the United States, it is not required to defend its corporate existence or right to use its franchises, privileges, etc., beyond the presentation of evidence of its due incorporation, documentary proof of which it included in the plea.

3. That as such Illinois corporation it is a citizen of Illinois, and as such entitled to all of the rights, benefits and privileges guaranteed by the Federal Constitution to citizens of Illinois, and that its corporate franchises, so far as granted by the State of Illinois, cannot be questioned in this court.

4. It alleges the validity of its incorporation, and claims that the legality of its franchises cannot be “questioned, impaired, or invalidated ” in this proceeding, and claims the application and-protection of “ section 10, art. 1, and section 1, art. 4, and section 1 of the Fourteenth Amendment to the Constitution of the United States.”

The foregoing pleas appear to have application to the questions of the validity of the incorporation, and the au[93]*93thority of the court to oust it of its corporate franchises, granted by the State of Illinois.

The pleas allege the following in relation to respondent’s business in Michigan:

1. That it has complied with the laws of this State in relation to the terms and conditions on which foreign corporations may be admitted to do business in this State.

2. That on January 27, 1902, the secretary of State at Lansing issued to it his certificate, entitling it to carry on business in Michigan.

3. That it has carried on business under such authority, and has filed the required reports from time to time.

Subsequently the attorney general filed replications to the several averments of the pleas. They allege:

1. That prior to, and at the time of the organization of the respondent corporation, there was in force in the State of Illinois a statute prohibiting and punishing the making of contracts, etc., in restraint of trade, which statute is set forth at length.

2. That at the time of this organization, there were many persons and companies engaged in the business of catching and dealing in fish, in Illinois, Michigan, and the Dominion of Canada, and these were specifically mentioned.

3. That on June 29, 1898, such persons, firms, and companies entered into a combination and contract to fix and limit the quantity of fresh-water fish to be caught and bought and sold in the States of Illinois and Michigan and the United States. To accomplish this result they caused to be executed and filed the necessary papers incorporating the respondent; most, if not all, of the incorporators being members of the several persons and firms aforesaid.

That, upon the organization of the respondent, the several members of the combination sold and conveyed to W. V. Booth, the president and a director of the respondent, acting on behalf of the combination, all of the business, properties, and plants and good will of the several mem[94]*94bers of the combination, at a valuation agreed upon, and said Booth, acting for and on behalf of the combination, paid for the same one-third in cash, one-third in the preferred stock, and one-third in the common stock of A. Booth & Co., which was duly assigned.

As a part of this arrangement the several stockholders, members, and persons composing the members of the combination executed to said Booth and his assigns an agreement and contract in writing that he had purchased the plant, business, and good will of such member, and had paid the consideration (naming it); each agreeing with the persons who signed and executed with him, and with said Booth, his heirs and assigns, that he and they would not for the next 10 years engage or be interested in the same or like kind or character of business as that theretofore conducted, or come in competition with the business of the persons engaged in such combination. The agreements, and the several plants, etc., were afterwards assigned by said Booth to the respondent, who has since operated the latter, and conducted the business theretofore conducted by said persons, etc., to the number, of 200 or thereabouts. It is further alleged that this was a device, by which the several concerns by and through the use of the respondent, and with its concurrence and active assent and co-operation, combined to monopolize the business of catching and selling fish as then conducted, and. as it should thereafter be conducted, and that respondent proceeded to continue and since has successfully conducted the same accordingly, and has become, and since January 1, 1902, has been the only jobber of said fresh-water fish (known in the trade as “hard fish”) in the United States.

This replication predicates upon the foregoing facts the claim that by reason of the organization for such object, and its subsequent operation, the respondent was organized and is conducting business in violation of the law of the United States and Illinois, and is therefore not entitled to the protection guaranteed by section 10, art. 1, or section 1, art. 4, of the Federal Constitution, or section 1 of [95]*95said Fourteenth Amendment thereto. A second replication recites substantially the same facts, and alleges that respondent, in its organization and contracts, and in trans■acting business in Michigan, has violated Act No. 255 of' the Public Acts of Michigan for the year 1899. A third replication is similar to the second.

On March 20, 1905, a motion was filed by the respondent, asking that the cause be dismissed for the following reasons:

“ 1. That no leave was given by the court to file the information.
2. That no precedent suit or proceedings in quo warranto was begun against the respondent in this case as required by section 2 of the act of 1899.
“3.

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Cite This Page — Counsel Stack

Bluebook (online)
143 Mich. 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-general-ex-rel-wolverine-fish-co-v-a-booth-co-mich-1906.