Hayes Grain Co. v. Rea-Patterson Milling Co.

223 S.W. 390, 145 Ark. 65, 1920 Ark. LEXIS 380
CourtSupreme Court of Arkansas
DecidedJuly 5, 1920
StatusPublished
Cited by1 cases

This text of 223 S.W. 390 (Hayes Grain Co. v. Rea-Patterson Milling Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes Grain Co. v. Rea-Patterson Milling Co., 223 S.W. 390, 145 Ark. 65, 1920 Ark. LEXIS 380 (Ark. 1920).

Opinion

Smith, J.

Appellant alleged in its complaint that it sold to the defendant (appellee) on April 3,1918, three cars of No. 3 white corn, f. o. b. St. Joseph, Missouri, or points taking same rates, to Coffeyville, Kansas. That said cars were delivered in accordance with the contract of purchase, but upon delivery of same appellee refused to receive them, whereupon appellant sold said cars of’ corn for appellee’s account for $1,874.35 less than the contract price, for which sum this suit was brought. There was a trial before the court sitting as a jury, and a finding for appellee, and judgment accordingly, from which comes this appeal.

The contract was negotiated and consummated as a result of conversations over the telephone, telegrams, and letters confirming these conversations and telegrams. Appellee was in the milling business, and could use only milling com, and emphasized that fact in the telephone conversations and also in its telegrams and letters. The contract finally entered into was concluded and evidenced as follows: Appellant called appellee on the ’phone on April 3, 1918, and advised that it had three cars of corn coming out of St. Joseph, Missouri, and three out of Omaha, and as it did not then need the corn, asked appellee to take the corn off its hands. In this conversation appellee’s representative stated that it did not need any corn, and only used corn which made a high grade of meal, but advised that appellee would wire the next day what it could do. • Pursuant to this promise the following telegram was sent the.next day: “Name your best price five cars choice three white milling corn f. o. b. St. Joseph.” Appellant replied by wire, “Fix' your own price. ’ ’ Appellee wired back, ‘ ‘ Bought three white today basis $1.76, St. Joseph. Will book your six cars same basis. Best can do. Subject to immediate acceptance by wire.” Appellant replied, “Booking the six cars for you price named. Thank you for helping us out.” And on the same day appellee wrote: ‘ ‘ Confirming our exchange of wires today, we are hooking* you six cars choice 3 white kiln-dried, shelled white corn, at $1.76 basis f. o. h. St. Joseph, Mo.” Enclosed in this letter were six memoranda, each for one car, in the following form:

“Purchase Contract. Coffeyville, 4-3-1918.

“Hayes Grain Company, Fort Smith, Arkansas.

“We confirm purchase of you by wire, your Mr. ..............................talking to our Mr..................................... as follows:

‘ ‘ One car containing capacity bushels, choice 3 white kiln-dried corn at $1.76 per bn. f. o. b. St. Joseph, Mo., or points taking same rate to ........................ Federal grades, Federal weights, shipment within ten days via Missouri Pacific. If no objection is made to this contract immediately by wire, same shall be considered final.”

It is the insistence of appellant that the writing set out above and designated “Purchase Contract” is the exclusive contract between the parties, and that all prior conversations and communications are merged into it and cannot, therefore, be considered; and further that the adjectives, “white” and “kiln-dried,” describing the corn, must be treated as suplusage, for the reason that only the specified grade of corn can be considered under the rulings of the Department of Agriculture putting in force the act of Congress regulating the sale and shipment of grain in interstate commerce.

The contract described the corn as 3 white, and appellant insists that any inquiry concerning the grade of the corn is limited to determining whether it graded “Nq. 3 white” at the time and place of the proposed delivery.

We cannot agree, however, that the memorandum set out above is the sole evidence of the contract. Upon the contrary, the final contract for the purchase of the three cars which form the subject-matter of this litigation was consummated by telegrams set out below sent and received on the following day. On April 4 appellant wired appellee, “Two cars our three white corn from Omaha were shipped and passed Coffeyville before our instructions reached our shippers. Will it be satisfactory for us to have Missouri Pacific move them back there if we pay additional freight? Also have three more cars same corn here on track and will be glad if you can use them for us. Please advise.” In reply, appellee wired, “Can use the two cars white corn from Omaha, which have passed Coffeyville if you pay extra freight charges, and the three cars in Port Smith at $1.76, St. Joseph. You pay out of line haul. All corn to be good three white milling corn. Subject to immediate acceptance by wire.” The appellant wired back, ‘£ Thank you, will bill the five cars to you $1.76, basis St. Joseph, we absorbing additional freight account cars coming here. ’ ’

On the same day appellee wrote the appellant as follows : £ £ Confirming exchange of wires today, we are booking you three cars of good No. 3 white shelled corn, kiln-dried, suitable for milling purposes, at $1.76 f. o. b. St. Joseph, Mo. * * * It is also understood two of the cars we purchased from ypu yesterday have passed Coffeyville and will be returned to us, all extra freight charges being absorbed by yourselves. You, of course, understand we buy white corn for milling purposes only, and expect a good quality of corn. "We enclose herewith confirmation covering the purchase today of the three cars now in Port Smith.”

Appellee’s offer was to buy milling corn, and the acceptance of that offer was unqualified. Appellant says, however, that,as the term “milling corn” does not appear in what is designated- as the written contract, appellee cannot be heard to say that there was such a condition. Appellant says this result is reached by the application of the doctrine that antecedent propositions, correspondence and prior writings, as well as oral statements and representations, are deemed to be merged into the written contract which concerns the subject-matter of such antecedent negotiations when it is free of ambiguity and complete.

We think, however, that the rule does not apply here, because the letters and telegrams are contemporaneous writings with the memoranda which appellant designates as the. contract; and we think it manifest that the parties intended that they should be so considered. They were all in the hands of appellant before it shipped the corn. Mann v. Urquhart, 89 Ark. 248. Besides, as we have shown, the final contract of sale was concluded the day after this memoranda of sale was signed by appellee and mailed to appellant.

Moreover, the very memorandum itself describes the corn as ‘ ‘ choice 3 white kiln-dried corn, ’ ’ and the testimony shows that the corn in controversy was not choice kiln-dried corn, although it did, in fact, grade “No. 3 white, ’ ’ and ordinarily this fact would have justified appellee in refusing to accept the corn. Appellant says, however, that it was unlawful, under the United States Grain Standard Act, for the appellee to purchase for shipment in interstate commerce under any designation except by grade, and that all other descriptive terms must be rejected as surplusage, and that the only question to consider is whether the corn would have graded “No. 3 white” at the time and place of the proposed delivery.

The Department of Agriculture was charged with the duty under the act of Congress of making and promulgating the necessary rules and regulations to govern the sale and shipment of different grains in interstate commerce.

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223 S.W. 390, 145 Ark. 65, 1920 Ark. LEXIS 380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayes-grain-co-v-rea-patterson-milling-co-ark-1920.