Clinton Cooperative Farmers Elevator Ass'n v. Farmers Union Grain Terminal Ass'n

26 N.W.2d 117, 223 Minn. 253, 1947 Minn. LEXIS 463
CourtSupreme Court of Minnesota
DecidedFebruary 14, 1947
DocketNo. 34,323
StatusPublished
Cited by4 cases

This text of 26 N.W.2d 117 (Clinton Cooperative Farmers Elevator Ass'n v. Farmers Union Grain Terminal Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clinton Cooperative Farmers Elevator Ass'n v. Farmers Union Grain Terminal Ass'n, 26 N.W.2d 117, 223 Minn. 253, 1947 Minn. LEXIS 463 (Mich. 1947).

Opinion

Magnet, Justice.

Plaintiff an!d defendant are cooperative associations. The former is a member and stockholder of the latter. Plaintiff seeks to enjoin defendant, its officers, and agents from purchasing for its own account grain which has been consigned to defendant for sale by defendant as a commission merchant. Defendant was organized under L. 1923, c. 326, as amended, and is licensed as a commission merchant by the state railroad and warehouse commission pursuant to Minn. St. 1941, c. 223 (§§ 223.01 to 223.11).4 The complaint alleges violation by defendant of L. 1917, c. 19 (which as §§ 223.09 and 223.10 represents a portion of said c. 223). In its answer, defendant admits that it has been and is purchasing for its own account grain consigned to it for sale by it as a commission merchant, and it alleges its intention to continue that practice unless restrained by order of the court. It pleads in justification of its conduct that the prohibitions contained in L. 1917, c. 19, have no application to it because c. 326, the act under which it is organized, authorizes cooperatives formed under that act to operate without the restraints of L. 1917, c. 19. It further alleges that the state railroad and warehouse commission has placed a practical construction to that effect upon the operation of the law. It also alleges that all such purchases are being made agreeable to contracts between it and its patrons. Plaintiff demurred to the answer upon the ground that it failed to state a defense to the complaint. The court overruled the demurrer and [255]*255certified the question presented by tbe demurrer as important and doubtful. The appeal is from that order.

The question submitted to us is whether a cooperative association such as defendant is exempt from the provisions of L. 1917, c. 19, which forbids any individual or corporation doing business as a commission merchant from buying on its own account grain consigned to it for sale as such commission merchant; in other words, whether defendant, a cooperative association organized under L. 1923, c. 326, and doing business as a commission merchant, may buy for its own account grain consigned to it for sale as a commission merchant.

In order to correct or stop certain abuses which had arisen in connection with the marketing of agricultural products, especially grain, the legislature passed L. 1917, c. 19, § 1 of which reads:

“No person * * * firm or corporation * * * engaged in selling grain, * * * as commission merchant, or for others for a compensation in any manner, who shall hereafter receive and accept for sale for account of the consignor or owner thereof, any such property, or who shall sell or attempt to sell or dispose of such property for account of such consignor or owner, shall hereafter be interested directly or indirectly, as purchaser or otherwise than solely as the agent of such consignor or owner and according to the contract of agency in the sale, purchase or disposition of such property; and no such person, persons, firm or corporation engaged as aforesaid shall hereafter in any transaction involving such sale, purchase or disposition of such property in any manner, directly or indirectly, represent or promote in any respect whatever the interest of any other person, persons, firm or corporation than said consignor or owner of such property.”

By § 2, the act imposes a penalty for violation, consisting of imprisonment or fine and the revocation of the commission merchant’s license. As stated, defendant has been duly licensed as a commission merchant by the railroad and warehouse commission pursuant to Minn. St. 1941, c. 223.

[256]*256Since defendant admits that it has bought and is continuing to buy grain consigned to it by members and patrons on its own account, it is guilty of violation of the prohibitory provisions of c. 19 if such provisions apply to it. It contends, however, that it is not subject to such prohibitions, first, because by L. 1923, c. 326, under which it was organized, it is expressly given the right or power to buy such products for its own account, and, second, since it is a cooperative association and all profits go to members and patrons and not to the association, it cannot act in any manner except in the capacity of agent.

Section 1 of L. 1923, c. 326, the provision which defendant asserts gives it the power it is exercising, reads in part as follows:

“A co-operative association, [sic] may be formed for the purpose of conducting any agricultural, dairy, marketing, warehousing, commission, contracting, building, mining, telephone, manufacturing, or any mechanical, mercantile or electrical heat, light or power business, or for all such purposes or for any other lawful purpose, upon the co-operative plan, and in addition to other powers, such co-operative association, [sic] shall have the power either as agent or otherwise to buy, sell or deal in its own products, the products of its individual members or patrons, the products of any other co-operative association or of its members or patrons, whether such co-operative association be organized under the provisions of this act or otherwise.” (Italics supplied.)

As applied to the present situation, the essence of the provision is this:

“A co-operative association, [sic] may be formed for the purpose of conducting any * * * commission * * * business * * * upon the co-operative plan, and in addition to other powers, such co-operative association, [sic] shall have the power either as agent or otherwise to buy * * * the products of its individual members or patrons, * *.” (Italics supplied.)

Defendant is buying “the products of its individual members or patrons.” The words “either as agent or otherwise” are, it seems to [257]*257us, all-inclusive and cover the capacity of defendant to buy in any manner it sees ñt. If we were to adopt plaintiff’s construction of the statute, we should be required to read the word “otherwise” out of it. There is nothing in the statute to indicate that the legislature intended that the word “otherwise” should be ignored or given any other meaning than the usual one. To us the language is perfectly plain. It is not ambiguous and calls for no interpretation. It is our duty to give to the language chosen its plain meaning.

“Construction lies wholly in the domain of ambiguity. If the language of a statute is plain and unambiguous, there is no room for construction. A statute is to be enforced literally as it reads, if its language embodies a definite meaning which involves no absurdity or contradiction.” 6 Dunnell, Dig. & Supp. § 8938, and cases cited.

Chapter 323 clearly authorizes the formation of cooperative associations to engage in the commission business and gives to such associations the power “either as agent or otherwise” to buy the products of its individual members or patrons. So, even assuming that prior to the enactment of c. 326 the prohibitions found in L. 1917, c. 19, applied to defendant, the later statute repealed by implication its applicability to defendant and its transactions.. In view of our impression of c. 326, it does not seem necessary to consider, except in passing, whether L. 1917, c. 19, originally applied to defendant or other similar cooperative associations. If c. 19 originally applied to defendant, then it is repealed. If it did not apply, then, of course, defendant did not violate it.

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Clinton Coop. F. E. Assn. v. Farmers U. G. T. Assn.
26 N.W.2d 117 (Supreme Court of Minnesota, 1947)

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Bluebook (online)
26 N.W.2d 117, 223 Minn. 253, 1947 Minn. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clinton-cooperative-farmers-elevator-assn-v-farmers-union-grain-terminal-minn-1947.