Florence Sewing Machine Co. v. Warford

1 Sweeny 433
CourtThe Superior Court of New York City
DecidedJuly 2, 1869
StatusPublished

This text of 1 Sweeny 433 (Florence Sewing Machine Co. v. Warford) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Florence Sewing Machine Co. v. Warford, 1 Sweeny 433 (N.Y. Super. Ct. 1869).

Opinion

By the Court:

Freedman, J.

The first question to be determined is whether George B. Buell was a factor or agent of the Florence Sewing Machine Company -within the meaning of the so-called Factors’ Act. This act, passed April 16,1830, is entitled “An act for the amendment of the law relative to principals and factors or agents ” (Laws 1830, p. 203; Edmond’s. Statutes at large, vol. iv, p. 461).

It is necessary only for the present purpose to consider the effect and meaning of the third section of said act, which is as follows:

“ Sec. 3. Every factor, or other agent, intrusted with the possession of any bill of lading, custom-house permit, or warehouse-keeper’s receipt for the delivery of any such merchandise (meaning the merchandise referred to in the first section of the act, consisting of merchandise shipped in the name of the factor or agent), and every such factor or agent not having the documentary evidence of title, who shall be intrusted with the possession of any merchandise _for the. purpose of sale, or as a security for any advances to le made or obtained thereon, shall be deemed to be the true owner thereof, so far as to give validity to any contract made by such agent with any other person, for the sale or disposition of the whole or any part of such merchandise, for any money advanced, or negotiable instrument, or other obligation in writing given by such other person upon the faith thereof.”

A bare inspection of the act 'shows that the legislature did not intend thereby to provide a remedy for all those hardships which have accrued to innocent persons by dealing with people having the apparent ownership of goods, as if they were the real owners; but the intention of the legislature was only to deal with cases in which innocent persons had been taken in, in .such dealings, by the factors -or agents of the owners of the goods, and [437]*437such factors and agents must have been intrusted with the possession, &c.

The words factor or other agent” refer to agents employed to sell goods or merchandise consigned or delivered to them by or for their principals, for a compensation commonly called factorage or commission, who may sell for their principals in their own names, as well as in the name of their principals, who are individually intrusted with the possession, control, and disposal of the goods to be sold, and who have a special property in and a lien upon the goods.

Now the facts in the case under consideration are as follows:

The Florence Sewing Machine Company had their manufactory and chief place of búsiness at Florence, Mass., and from September, 1865, to the time of the trial in this action, kept a store for the exhibition and sale of their machines at No. 505 Broadway, in the City of New York. George B. Buell had charge of the New York store from September, 1865, until about the month of April, 1867. During that time he had the entire management of the business of said store, tinder the supervision of the company’s officers, and subject to such instructions as the said officers saw fit from time to time to give him; he was called the Principal Agent of the Company for the State of New York; minor agencies in other parts of the State reported to him and transmitted their orders through him to the company; he was permitted to hire the clerks and other employes necessary for carrying, on the business of the store, and for his own services received from the company a salary of three thousand dollars per annum.

The business at the store, however, was carried on in the name of the plaintiffs and under the supervision of plaintiffs’ officers; the plaintiffs’ sign was over the store; all goods sent to the store from the manufactory were directed to the Florence Sewing Machine Company, No. 505 Broadway.” The sales were made in the name of the company; the bill-heads had the company’s name upon them as the name of the person selling the goods; the expenses of the store were paid with money derived from [438]*438sales; a regular account was kept between the principal establishment at Florence and the store in New York, and the proceeds from sales not used in defraying the expenses of the store in. New York were to be remitted to the Florence establishment.

It cannot, therefore, be said that the machines sent to the store in New York were consigned to or delivered to George B. Buell personally, or that the plaintiffs intended so to consign and deliver them. Buell did not receive any documentary evidence of title to them, which, by the established usages of trade or otherwise, gave him the entire and exclusive control of the delivery of the machines, upon arrival, to himself as the person holding such documentary evidence, nor had he the possession, actual or in law, of them. lie had not even a right to the possession in himself; he had no special property in or lien upon the machines for his services; he was a salaried officer; he had no right to dispose of them as his own in any manner, and no authority to exercise even ostensible acts of ownership over them. On the contrary, the machines, while at the store in New York, were just as much in the possession, and under the direct control of the company as they would have been if said store had constituted only an exhibition room inside the walls of their manufactoiy. Buell was, in effect, a mere employe, a clerk, and as such had only the charge and custody of the goods for the special purpose of exhibiting them and selling them in the name of the Florence Sewing Machine Company, as an article manufactured by said company specially, and for the account and benefit of said company, while the possession and property remained in the company. Upon this state of facts it is to be determined whether Buell should be considered as a factor or agent, intrusted with the possession of the goods within the true intent and meaning of the Factor’s Act. It is true, a factor empowered to sell is always an agent. For whenever any person competent to do an act employs another person to do it for him, the latter is an agent (Story on Cont., secs. 277, 295). But there are many kinds of agents who [439]*439are not factors, and there is a broad distinction between factors and agents to sell.

First—Factors are entitled to á general lien for all advances and charges upon oil the goods of the principal in their hands, while mere agents have, as such, only a special lien, and no general lien, unless by usage in a particular trade or business, or by force of some special agreement (id., 327).

Second—By the common law a factor may vend the property, or pledge it for advances actually made in his own name or in that of his principal, as he may elect; and he is compensated, usually, by a commission or percentage upon the gross proceeds of sales. But -an agent sells in the name of his principal, and charges for his services such sum as they may he worth, or, by agreement, may have a salary, a percentage, a specified sum, or nothing (id.).

Certainly Buell was not a factor of - the plaintiffs. But he was their agent in the sense that he was authorized to do for them certain acts which they could have done for themselves, i. e., to sell machines. He was then within the letter of the act, so far as the mere question of agency is concerned.

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Bluebook (online)
1 Sweeny 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florence-sewing-machine-co-v-warford-nysuperctnyc-1869.