Merchants Exchange v. Knott

111 S.W. 565, 212 Mo. 616, 1908 Mo. LEXIS 160
CourtSupreme Court of Missouri
DecidedJune 6, 1908
StatusPublished
Cited by42 cases

This text of 111 S.W. 565 (Merchants Exchange v. Knott) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants Exchange v. Knott, 111 S.W. 565, 212 Mo. 616, 1908 Mo. LEXIS 160 (Mo. 1908).

Opinion

LAMM, J.

~Defendants stood on their demurrer to plaintiffs’ bill having for its life injunctive relief. Standing mute and refusing to plead further, they appeal from a judgment, nisi, overruling such demurrer and making perpetual a temporary injunction theretofore granted.

The demurrer challenges tbe bill in that it fails to state facts sufficient to constitute a cause of action, [623]*623fails to state facts entitling plaintiffs to the relief prayed for, or to any relief, and shows on its face an adequate remedy at law.

The hill is an elaborate pleading developing in logical order, in more or less interdependent paragraphs, and delivering divers attacks upon the constitutionality of the grain-weighing and grain-inspecting laws in force in this State, to-wit, sections 7654-7-8-9 and 7660-2-5, 7670-3-4 of article 3, chapter 117, Revised Statutes 1899, and an elaborate statute ordaining State inspection and weighing of grain, enacted by the General Assembly in 1907 (Laws 1907, p. 285, et seq.), repealing all of article 3, supra, saving the sections above, and enacting 47 new sections bearing, seriatim, the same- numbers as those repealed.

As the demurrer admits all allegations of fact well pleaded in the bill, but not those in effect legal conclusions of the pleader, we shall set down with particularity the allegations of fact and the grounds of alleged unconstitutionalitv.

The bill, in substance, alleged:

(1) That plaintiff, the Merchants Exchange of St. Louis, is a domestic corporation doing business in the city of St. Louis and State of Missouri and as such is entitled to sue and be sued, complain and defend in the courts. That it was created to promote the commercial and manufacturing interests of said city and vicinity; to inculcate just principles of trading, to establish and maintain fairness and uniformity in commercial usages, to acquire, preserve and disseminate valuable information, to avoid and adjust controversies between traders, and facilitate the transaction of legitimate business between its members and between them and others and is authorized to further the foregoing ends by adopting needful rules and bylaws. That as such corporation it is in active existence in the city of St. Louis.

[624]*624(2) That plaintiff, Cochran, is a member of said Exchange and is chairman of its department of weights — a department organized under the rules of the Exchange to secure correct weighing and methods of weighing of property handled by the Exchange and by others requesting such service, and that said Cochran is actively engaged in that business. To that end he has a large number of assistants engaged in the correct weighing of grain handled by members of the Exchange as receivers or shippers — that said members are five hundred or more, practically all the persons engaged in the grain trade in St. Louis.

(3) That plaintiff, the Board of Trade of Kansas City, is a voluntary association organized and controlled by dealers in grain and grain commission merchants in Kansas City, Missouri, of a membership of about two hundred, having the plaintiffs, Brodnax and Bigelow, as president and secretary, respectively, who in turn have authority to sue in the name of said association for its members. That its members constitute practically all such dealers and brokers in Kansas City, and it has also established a department of weights under its rules for the purpose of securing correct weighing and methods of weighing of grain handled by its members and others requesting such service.

(4) That defendants, Knott, Wightman and Ogles-by, constitute the Board of Railroad and Warehouse Commissioners of this State, having supervision of the inspection and weighing of grain into and out of public elevators in the State of Missouri, and having power to appoint a chief inspector of grain to act as such under said Board. That defendant Nunn was by it appointed chief inspector and is exercising duties as such in Kansas City. That Nunn has power to appoint deputy chief inspectors of grain and under that authority appointed the defendant Miller as such who has charge of the office of said Board in St. Louis and is [625]*625engaged in the general supervision of the inspection and weighing of grain in said city.

(5) That said departments of weights of said Exchange and Board of Trade have for a number of years severally supervised the weighing of grain received in and shipped from said cities, which system of supervision has become vital to the commercial transactions therein, increasing the grain trade thereof, and increasing the reputation of the markets thereof for correct weighing and fair dealing over a wide section of country inclusive of all sources of grain shipments to said markets in Missouri and in the surrounding States. That by reason of said cities being on the boundaries of Missouri a large part of the grain dealt in as aforesaid is stored in elevators in Illinois and Kansas, where, by reason of comity existing between the legal departments of Kansas and Illinois, the weighing departments aforesaid exercise supervision over grain weighing in said elevators, and that said grain so dealt in and stored in elevators in Illinois and Kansas is interstate in character, though commercially a part of the grain trade of said cities, and is not subject to control by the laws of Missouri.

(6) That it is the rule and uniform custom of said departments of weights to give out to parties entitled thereto certificates of weights, which certificates, by reason of their uniform accuracy, have established the reputation of said markets throughout a wide area and have proved of immeasurable value to the business of said grain dealers and to others shipping to said trade centers. That to prohibit such weighing and the' issue of such certificates by said departments of weights would injure the reputation of said grain “markets and would lower their reputations and standards for fair dealing.

(7) That by the Grain-Weighing and Grain-In[626]*626specting Act of 1907 certain sections of article 3; chapter 117, Revised Statutes 1899, are repealed (enumerating them) and 47 new sections enacted establishing State inspection and weighing of grain in public warehouses, providing for the conduct thereof, when, where and how grain shall be inspected, for warehouse receipts, inspection and weight certificates, and for the appointment of inspectors and weight-masters with specified duties in the grading of grain and penalties for violations of the act. That said act makes unlawful and strikes down all said functions and duties in weighing and inspecting grain by the departments of weights of said Board of Trade and Exchange, and prohibits said departments from securing accurate weighing of grain in said cities or issuing certificates of weight, and, hence, is unconstitutional as attempting the impairment of the exercise of a legitimate business, violating the right of private contract and interfering with interstate commerce; and its enforcement will destroy the integrity of said markets and work irreparable injury to grain dealers in said cities, destroy the reputation and character of said markets established as aforesaid, and lessen the number of shippers of grain to them.

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Bluebook (online)
111 S.W. 565, 212 Mo. 616, 1908 Mo. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-exchange-v-knott-mo-1908.