National Bank v. Augusta Cotton & Compress Co.

30 S.E. 888, 104 Ga. 403, 1898 Ga. LEXIS 339
CourtSupreme Court of Georgia
DecidedJune 7, 1898
StatusPublished
Cited by15 cases

This text of 30 S.E. 888 (National Bank v. Augusta Cotton & Compress Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Bank v. Augusta Cotton & Compress Co., 30 S.E. 888, 104 Ga. 403, 1898 Ga. LEXIS 339 (Ga. 1898).

Opinion

Cobb, J.

1. In 1854 a law was passed by the General Assembly which declared that “ cotton sold by planters and commission merchants on cash sale shall not be considered as the property of the buyer or the ownership given up until the same shall be fully paid for, although it may have been delivered into the possession of the buyer; any law, usage, or custom to the contrary notwithstanding.” The title of the act from which this extract is taken was “an act for the protection in certain cases of planters and cotton sellers within the State of Georgia.” Acts 1853 — 54, p. 56. In 1857 a similar law was passed in reference to rice sold by planters and commission merchants. Acts 1857, p. 15. These acts were embodied in the first three codes of the State. In 1885 the section of the then-existing code, which embraced the acts above referred to, was amended [406]*406by adding other commodities to the provisions of the section and' inserting a proviso that in cases where the property which was the subject of the sale^had been delivered into the possession of the buyer, the right of the seller to collect the purchase-money should not be affected by the loss or destruction of the property by fire or otherwise. Acts 1884-5, pp. 45, 52. The section of the present code relating to this subject is in the following words: “ Cotton, corn, rice, crude turpentine, spirits turpentine, rosin, pitch, tar, or other products sold by planters and commission merchants on cash sale, shall not be considered as the property of the buyer until fully paid for, although it may have been delivered to the buyer: provided, that in cases where the whole or any part of the property has been delivered to the buyer, the right of the seller to collect the purchase-money shall not be affected by its subsequent loss or destruction.” Civil Code, § 3546. It was contended in this case that the law above quoted was intended solely for the protection of the planter or producer of the articles mentioned in the law, and that the commission merchants referred to were only entitled to protection under this law when they were selling the articles specified for and on account of the planter, and not when they were selling them as their own property and on their own account. While this question has never before been directly raised and there is no decision of this court passing in terms upon the point, there are cases which have been decided, which, upon an examination of their facts, will be found to rule by necessary implication that commission merchants are entitled to protection on their own account.

The case of Savannah Cotton-Press Association v. MacIntyre, 92 Ga. 166, is the one more directlj' in point on this subject than any other. In that case MacIntyre was a cotton-factor and a commission merchant, and made a cash sale of thirteen bales of cotton to Green and delivered to him the cotton. On the day following the sale, demand for payment was made and paj^ment was refused. In the meantime Green had delivered the cotton to the Cotton-Press Association, whose business was that of compressing cotton, and had procured its receipt for the property. With this receipt he obtained from the Ocean Steam[407]*407ship Company a bill of lading of the cotton,- drew a bill of exchange, and to secure its payment pledged the bill of lading and induced the bank to advance money on it. Five days after the cotton was delivered to the Cotton-Press Association, MacIntyre brought suit against it, and upon the trial of this case a verdict in his favor for the value of the cotton was rendered. Mr. Justice Lumpkin, in writing the opinion affirming the judgment of the court below in refusing a new trial, uses this language: “Indeed, no other verdict could have been properly rendered; and consequently, the court below committed no error in refusing a new trial.” While it is true that it does not appear from the statement of facts in this case that the point was made that MacIntyre, the commission merchant, was not entitled to recover, because he was selling on his own account, and this question is not discussed at all in the opinion of the court, still it will be seen at once that the judgment in this case could not have been rendered as it was unless the court as it was then constitxited were of the opinion that the law in question protected the commission merchant when selling on his own account. While the question was not discussed, it was directly involved in the case, and it seems to us that the decision is controlling upon the point. But even if this were not so, we think the acts above quoted and now embraced in the code were intended by the General Assembly, not only for the protection of the planter, but also for the protection of the commission merchant when selling for himself. The title of the act of 1854 named the persons intended to be protected as planters and cotton-sellers. The title of the act of 1857, which placed sales of rice upon the same footing as cotton, designated the persons to be protected as planters and rice-sellers. It is true that in all of the acts the persons to be protected are referred to as planters and commission merchants, but construing the expressions used in the acts in connection with those used in the titles, there can be no question that it was the intention of the General Assembly to protect a commission merchant in his sales as well as in sales made by him on account of his customer. It was further contended by the plaintiff in error, that the MacIntyre case was not controlling upon the pres[408]*408ent case, because the bank which had received the compress receipt in that case was not a party to the suit in which the recovery was had. It is true that the bank was not a party, the only parties being MacIntyre and the Cotton-Press Association; but an examination of the facts of the case will show that the Cotton-Press Association defended upon the bank’s title, that is, their defense was that there was an outstanding paramount title in the bank, growing out of the compress receipt having been received by them in good faith without notice. This defense, under the decision, was held to be unavailable; and while of course the bank was not bound by the judgment, being no party, the same judgment would have been rendered if the bank had been a party.

2. It is contended, however, that the act of 1854, as amended by the act of 1885, now embraced in section 3546 of the Civil Code, is unconstitutional for three reasons: first, “it is special legislation”; second, “the act retained title subject to the condition of the destruction of the property by fire, in which event the title was not retained”; third, “it impaired the obligation of the contract made by Butt & Co. with the bank under the deposit of the title of the cotton.” We do not think‘the original act of 1854, as amended by the act of 1885, is unconstitutional for any of the reasons assigned. No section of the constitution of force at the time of the passage of the act of 1854 was called to our attention as being violated by this act. We have not been able to find one which would in any way affect the act in question. It is true that the act applies only to certain classes ; but all acts which are limited in their operation to certain classes of subjects are not necessarily unconstitutional. Especially was this true at the time the act of 1854 was passed, when the constitution then in force contained no provision which either in terms or by necessary implication prohibited legislation of this character. There may be good and sound reasons why certain classes should be made subject to different rules from those that govern people generally.

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Bluebook (online)
30 S.E. 888, 104 Ga. 403, 1898 Ga. LEXIS 339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-bank-v-augusta-cotton-compress-co-ga-1898.