Matthews Glass Co. v. Burk

70 N.E. 371, 162 Ind. 608, 1904 Ind. LEXIS 89
CourtIndiana Supreme Court
DecidedMarch 16, 1904
DocketNo. 20,239
StatusPublished
Cited by5 cases

This text of 70 N.E. 371 (Matthews Glass Co. v. Burk) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matthews Glass Co. v. Burk, 70 N.E. 371, 162 Ind. 608, 1904 Ind. LEXIS 89 (Ind. 1904).

Opinion

Dowling, J.

The appellant sued the appellee for a balance of $3,500, claimed to be due on account of eight car loads of window glass sold and delivered by the appellant to the appellee under a contract in these words: “Marion, Indiana, October 26, 1899. It is hereby understood and agreed by and between Matthews Glass Company of Matthews, Grant county, Indiana, and Benjamin F. Burk of Marion, Indiana, that the former is to sell the latter virtually all the glass they make during the blast of 1899 and 1900 at a discount which will be five per cent", lower than the lowest price made by the American Window Glass Oom[610]*610pany, all rebates included, on all sizes single strength and on all sizes double strength to sixty united inches. On all sizes double strength sixty united inches and over the price is to be seven and one-half per cent, lower as herein mentioned. On all shipments made to Marion, freight is to be allowed. If shipments are to be made other than to Marion, and as directed by said Burk, then no freight is to be allowed. 0The quality of all glajss is to be fully up to standard brands. Should the price be lower than what would be equal to ninety per cent, from present list, then said glass company is to have the privilege of not furnishing in case they decide not to sell, and if for any reason of dissatisfaction on the part of either party this agreement may be annulled on one week’s notice. Payment for glass is to be made by said Burk promptly'on receipt of same, less two per cent. Matthews Glass Company, per A. Wucliner, Sec’y., Joseph Mayer, Prest. Benj. F. Burk.”

The appellee filed an answer in denial, a plea of payment, and a counterclaim. The only material part of the counterclaim on this appeal is a demand for a reduction of the price of the glass on account of rebates made by the American Window Glass Company December I, 1899, to which he alleged he was entitled by the terms of the foregoing contract. The first paragraph of answer to the counterclaim Avas a denial; the second an argumentative denial; and the third averred that the rebates made by the American Window Glass Company to its customers were illegal, because not made in the ordinary coursé of trade, but for the purpose of preventing competition; that the price fixed by the American Window Glass Company was less than the cost of manufacture, and that the said company was an unlaAvful combination for the purpose of creating a monopoly in the Avindow glass business. Uo reply was filed. A demurrer to appellee’s counterclaim was overruled, and a demurrer to the third paragraph of appellant’s answer to appellee’s counterclaim was sustained. The cause Avas tried. [611]*611by. the court, and there was a finding for the appellee. A motion for a new trial was overruled, and judgment was ' rendered on the finding.

The rulings on the demurrer and on the motion for a new trial are assigned for error.

We find no error in the action of the court in sustaining the demurrer to the third paragraph of appellant’s answer to the counterclaim. The purpose of the contract between the appellant and the appellee was not to prevent competition, but to enable the appellee to compete successfully with the customers of the American Window Glass Company. For all that appears in the pleadings, the nature of that corporation and its methods of doing business were as well known to the appellant when it entered into the contract with the appellee, as at any time afterward. The parties having seen fit to adopt the prices which might be fixed by the American Window Glass Company for the sale of its glass to its customers as the basis of the prices to be paid by the appellee to the appellant, neither of them can be heard to say that the American Window Glass Company was an illegal combination, and that its methods of dealing were unfair. They fixed the terms of the agreement with each other voluntarily and deliberately, and we can discover no reason why one of them should be released because prices went down instead of being advanced. If the prices of glass had been kept up by the American Window Glass Company, we cannot tliink that the appellant would have objected to the contract' on the ground that the American Window Glass Company was an unlawful combination for the purpose of creating a monopoly in the business of manufacturing and selling window glass.

2. The principal controversy is over the proper construction of the contract. The appellant claims that the price to be paid for glass was five per cent, lower than the lowest price made by the American Window Glass Company, all rebates included, on all sizes single strength, and [612]*612on all .sizes double strength to'sixty united inches; and seven and one-lialf per cent, lower than the lowest price made by the American Window Glass Company, all rebates included, on all sizes double strength sixty united inches and over, less two per cent., up to the time of the delivery of each shipment to the appellee. The latter contends that the price of the glass was to be computed after the production was completed upon the basis of the whole- quantity sold and delivered and that the total sum to be- paid by the appellee to the appellant was to be five per cent, and seven and one-half per cent, less than the lowest prices at which the American Window Glass Company sold the same kind of glass, during the same period, all rebates included, less two per cent.

The contract was an executory one, and contemplated the sale of the entire output of the appellant for the season of 1899 and 1900. The time and the quantity of the shipments were not fixed. It may be assumed that the glass was to be delivered as fast as manufactured in sufficient quantities to justify shipment. Payment was to be made by the appellee on receipt of each shipment. At what price ? The contract answers the question. At a discount of five per cent, lower than the lowest price made by the American Window Glass Company, all rebates included, on all sizes single strength, and on all sizes double strength to sixty united inches; and on all sizes double strength, sixty united inches and over, at a discount of seven and one-half per cent, on prices fixed by the American Window Glass Company, less two per cent. The contract does not provide for the payment of any rebate by the appellant to the appellee.

The purpose of the parties was to enable the appellant to undersell the American Window Glass .Company. If the prices of glass fell ninety per cent, below an existing price list, the appellant had the right to end the agreement. Either party Avas authorized to cancel it upon one [613]*613week’s notice. All these provisions indicate that each shipment was to be treated as a separate sale and transaction, and that the price to be paid for the glass shipped was to be computed on the basis of the prices before that established by the, American Window Glass Company existing at, the date of the receipt of the glass. The agreement is the same in legal effect as if it had provided that payment for each shipment should be made at the market price, say, at Chicago, on receipt of the glass. Any other construction would leave the price undetermined until the whole of the output of the factory should be received by the appellee, and neither party would know what the price would bo until the end of the season.

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Bluebook (online)
70 N.E. 371, 162 Ind. 608, 1904 Ind. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matthews-glass-co-v-burk-ind-1904.