Brewer v. Michigan Salt Ass'n

11 N.W. 370, 47 Mich. 526, 1882 Mich. LEXIS 688
CourtMichigan Supreme Court
DecidedJanuary 25, 1882
StatusPublished
Cited by6 cases

This text of 11 N.W. 370 (Brewer v. Michigan Salt Ass'n) 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
Brewer v. Michigan Salt Ass'n, 11 N.W. 370, 47 Mich. 526, 1882 Mich. LEXIS 688 (Mich. 1882).

Opinion

Cooley, J.

The plaintiff institutes this suit to recover of the defendant the value of a quantity of salt manufactured by himself and accidentally destroyed by lire afterJ as he claims, it had been sold by him to the defendant. The controversy turns in the main on the question whether, under the peculiar facts of the case, the title to the salt had passed to the defendant before the fire took place.

The facts are agreed upon, and they are as follows:

1st. The defendant is a corporation organized under chapter ninety-five of Compiled Laws, under the corporate name of “The Michigan Salt Association.” It is not. engaged in the business of manufacturing salt, but is, and was engaged in the year 1878, in the business of selling salt and the transportation of its products to market. , The purpose of its organization, as expressed in article 2 of its articles of association, is as follows:

“ The purpose for which this association is formed is the manufacture-of and dealing in salt, and to engage in the transportation of its products to market.”

2d. Plaintiff in 1878 was a member of the association and one of its directors. Any member of the association, being a manufacturer of salt within the State, is eligible as a director.

The following is a portion of article one of the by-laws of the association:

“Any manufacturer of salt in this State is entitled to become a stockholder in this association by signing the articles of association on its-books, and designating the number of shares taken, which shall not exceed two shares of the capital stock for every barrel of the average-daily capacity of his manufactory, on a fair estimate. From the proceeds of the salt sold there shall be paid an annual dividend of 12-per cent, to each stockholder on the amount paid in, payable on the-[529]*52915th day of July and January of each year, which, together with all losses sustained, and all costs and expenses incurred in handling and selling, together with the inspection fees, shall be charged up as expenses to the salt handled before a division of proceeds of sale is made.”

3d. The following is a copy of the contract entered into between the parties January 17, 1878 :

“This agreement, made this 17th day of January, A. D. 1878, between the Michigan Salt Association of the first part, and Addison P. Brewer, party of the second part, witnesseth as follows :
“ Whereas, said first party has become and is a corporation under the laws of Michigan, formed for the purpose of manufacturing and dealing-in salt, including the shipping and sale of salt: and whereas, the party of the second part is engaged in the manufacture of salt, and propose to place the entire product of such manufacture of said second party in the hands of said first party, to be disposed of and accounted for in accordance with the by-laws of said first party, which by-laws said second party has examined and knows the contents thereof; now, to effectuate such intent, it is agreed between said parties as follows: Said second party i agrees that he will make salt solely on account of said party of the first ’ part of the best quality of the kind manufactured by said second party; that he will not sell or pledge any salt made by or for him, but deliver the same to said first party, upon the terms offered by the said first party, in accordance with its charter and by-laws; and that he will generally, in all respects, conform to the by-laws of said first party, and the rules and regulations which may be adopted by the board in conformity with the true intent and meaning of the articles of association and by-laws of said party of the first part.
“ Said first party agrees to receive said salt, so to be delivered by said second party, and sell and account for the same to said $econd party in accordance with the regulations and by-law-s of said first party. It is further agreed that in case of the failure on the part of the second party to deliver all the salt made at his works to said first party as herein provided, or in case said second party shall sell or deliver salt to others, made by the said second party, in every such case the said second party shall pay to said first party the sum of ten cents, for settled and liquidated damages, for each barrel of salt otherwise sold or disposed of, and in case of any action for a breach of any part of this contract, such action shall not be deemed to put an end to the contract, but the same shall continue in force until the expiration of the term herein provided for. and successive actions may be had for successive breaches thereof, in case the same shall occur. It is also agreed that this contract shall continue in force until the first day of March, A. D. 1879.
“In witness whereof, the said first party has caused this agreement to be signed by its president and countersigned by its secretary and said second party.
W. R. Burt, President.
A. P. Brewer.
“D. G-. Holland, Secretary.”

4th. This agreement is the same, except in the name of the plaintiff, as defendant made with all persons whose salt was handled by the association, and under similar contracts-the association handled nearly the entire product of salt [530]*530manufactured in the Saginaw Talley, and is in the form prescribed in the by-laws of the association.

The following is article 7 of the by-laws of defendant:

“Every manufacturer, in becoming a member of the association, shall execute and deliver to it a contract for all salt manufactured by him or them, or a lease of his salt-manufacturing property, including all apparatus and appurtenances thereunto belonging for the purpose of manufacturing, such contract or lease shall be for -the term of two years, or until the dissolution of the association, and shall not impose ány restriction that will prevent the manufacture of salt at any and all times.
“Each and every stockholder shall manufacture salt for this association on the terms and conditions, as follows :
“That he will make salt solely on the association’s account, of the best quality of the kind manufactured by him, according to the conditions of his contract or lease.”

That the following is a copy of articles 8, 9, and 10 of the by-laws of said defendant:

Article S. The board shall determine the rate of advance, with interest to be charged on the same, which the association shall make on salt, which may be changed from time to time, but shall not bo less than eighty cents (80c.) per barrel on fine salt to the time of the annual meeting in 1876, and which shall be payable on the 17th day of each month, if a business day, if not, the first business day thereafter, upon all certificates which shall have been filed with the secretary on or before the 3d day of the month, and notice given that such advances will be required; provided, that this association shall receive no salt that is not plainly branded, especially with the manufacturer’s brand.

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Cite This Page — Counsel Stack

Bluebook (online)
11 N.W. 370, 47 Mich. 526, 1882 Mich. LEXIS 688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brewer-v-michigan-salt-assn-mich-1882.