Consolidated Flour Mills Co. v. Muegge

1927 OK 262, 260 P. 745, 127 Okla. 295, 1927 Okla. LEXIS 347
CourtSupreme Court of Oklahoma
DecidedSeptember 13, 1927
Docket16959, 16960 and 16961, Consolidated
StatusPublished
Cited by24 cases

This text of 1927 OK 262 (Consolidated Flour Mills Co. v. Muegge) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Flour Mills Co. v. Muegge, 1927 OK 262, 260 P. 745, 127 Okla. 295, 1927 Okla. LEXIS 347 (Okla. 1927).

Opinion

I-IALL, C.

The plaintiff in error in these cases was defendant in the court below, and the defendants in error were plaintiffs. For convenience they will be referred to in this opinion as they appeared in the trial court. Occasionally, herein,the defendant will be referred to as “company.”

Briefly the facts are as follows: The defendant was and is a foreign corporation incorporated under the laws of the state of Kansas, with its principal offices at Hutchinson in that state. The defendant was the owner and operator of an extensive chain of flour mills located in that state. It was also the owner of a number of grain elevators which it operated in connection with its mills for the manufacture of flour and ■by-products of wheat. Two of these elevators were located in the state of Oklahoma, one at the town of Numa and the other at the town of Lamont. These actions grew out of transactions with defendant at its elevator in the town of Lamont, The defendant owned and operated the grain elevator at Lamont from April, 1920, fib the latter part of August, 1923. The *296 company’s agent or managing officer or person in charge of its business in connection with the elevator at Lamont was one A. M. Boyer, who was such manager or agent during the entire period of its operations in this state. Boyer, as such agent and manager for the company, the defendant herein, acted' within the scope of the company’s business, purchased for it wheat from the farmers residing in the community or surrounding country about Lamont, and paid for this wheat so purchased with the company’s checks or bills in the form of sight drafts to the defendant company, payable through some designated bank at its general offices at Hutchinson, Kan.

It was the practice of the company, and its system of doing business, to receive. wheat in wagon loads, weigh and grade same and issue to the seller what was called a “scale ticket.” Often the seller of the wheat would desire the immediate payment for that particular load of wheat and in such ease Boyer, as such company’s manager, would issue to the seller the company’s sight drafts as stated above, or what the company designated on the scale ticket as a “check.” More often, however, during these three years of operation by this company at Lamont, the farmers would haul their wheat to the elevator and Boyer would weigh- and grade same in the regular manner, dump the wheat into the elevator bins and issue the scale tickets to the seller. Then the seller would keep these scale tickets, several in number in many instances, and when he needed or desired the money he would bring in to the elevator all of hi-s scale tickets and Boyer would issue to the seller a check or draft for the sum total. One of the plaintiffs in this action, to wit, A. Muegge, had 13 separate and distinct scale tickets outstanding at the' time Boyer became involved in the clutches of the law with his company, the defendant herein. The company refused to pay for the wheat represented by these scale tickets.

The defendant, while operating at Lamont in this state, purchased about 100,000 bushels of wheat. In all these purchases, and all its business at its elevator there, was done and- transacted by and through Boyer, the company’s manager and agent. The defendant company actually received at its mills in Kansas every bushel of the 100,~000 bushels of wheat imrchased by Boyer at Lamont from these plaintiffs and others. The sellers of this wheat received payment for approximately 88,000 bushels. 12,000 bushels, a considerable portion of which was sold or placed in the company’s elevator by plaintiffs in these actions, has never been paid for by defendant or any other person. The defendant claims, which is undoubtedly correct, that its manager, Boyer, through fraud and a distortion of the books and records of the eómpany, got payment, himself, for plaintiff’s wheat, the amount of which is the amount in controversy in these cases, and appropriated the -same to his own use and benefit.

It appears that this man Boyer, at various times, embracing a short period of time before his malfeasances were discovered by his principal, the defendant, had made out scale tickets to himself, representing certain loads or quantities of wheat he had' purchased for the company, and had sent these forged scale tickets and duplicates to the company and had drawn sight drafts on the company payable to himself, and thereby was enabled by such fraudulent methods to get payment for this 12,000 bushels of wheat which these outstanding scale tickets represented. In some eases he would issue the seller scale tickets written on the company’s letterheads, and often on blank paper. He was enabled to defraud the company to such a considerable extent by the fact, as aforesaid, that it was the practice and custom of the company and of the farmers to haul in their wheat to the elevator, get a scale ticket for each load and often wait until the end of the season before bringing in these scale tickets to receive from Boyer the company’-s check or draft for the entire amount. This, of course, was optional with the seller. If he wanted the money for each load, the company through Boyer would pay him “cash on delivery” of the wheat. Either course ■was the company’s approved method. Up to the time that Boyer’s misconduct was discovered, which was just prior to the company’s withdrawal from the state, this defendant company, being a large and responsible concern, had and deserved the confidence of the entire people of that community ; and they of course felt perfectly safe in holding and retaining their scale tickets until they needed the money from the sale of their wheat. They had done so for two preceding years without any disastrous or unpleasant effects.

In addition, it appears that the defendant sold feedstuffs at retail from its elevator. However, this decision will be based upon broader ground. The fact of its sale of feedstuffs at retail may be entirely disregarded. The defendant companyi leased the land on which the elevator was built, built *297 the elevator, and' was the owner of it and all the machinery connected therewith. This property, elevator, and the amount of wheat therein on the first of January of each year, was assessed for taxation.

As soon as this misconduct of Boyer was discovered by the company, Boyer was immediately discharged; and the plaintiffs within a short period of time presented these scale tickets to the company for payment. But instead of paying for this wheat, it immediately sold or made a transfer of its property, to wit, its elevators at Numa and Lamont, and withdrew from the state.

The defendant had not obtained authority to do business in the state of Oklahoma, and had not designated an agent upon whom service of process could be made.

The plaintiff commenced these actions in the district court of Grant county, the proper forum, and service of process upon the defendant was obtained by service of summons upon..the Secretary of State.

The defendant appeared specially upon a motion to quash the summons, and raised this jurisdictional question at every step of the proceedings throughout the, trial. The other pertinent facts relative to the case will be stated hereafter in the opinion.

Defendant first contends that it was not doing business in this state at the time the action was brought or ■ at the time of the service of summons. In reality it contends that it never was engaged in doing business in the state of Oklahoma.

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Bluebook (online)
1927 OK 262, 260 P. 745, 127 Okla. 295, 1927 Okla. LEXIS 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-flour-mills-co-v-muegge-okla-1927.