Rice v. Armour & Co.

194 Iowa 144
CourtSupreme Court of Iowa
DecidedApril 4, 1922
StatusPublished
Cited by2 cases

This text of 194 Iowa 144 (Rice v. Armour & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Armour & Co., 194 Iowa 144 (iowa 1922).

Opinion

Faville, J.

The appellee alleges that, on or about the 20th day of May, 1920, it sold to the appellant two carloads of hogs at Sioux Falls, South Dakota, which hogs were shipped to the appellant at Sioux City, Iowa. The contention of the appellee is that it sold said hogs to the appellant through a firm in Sioux Falls, known as the Hopkins-Harrington Company, which, it is claimed, were agents of the appellant.

The claim of the appellant is that no such agency existed, and that Hopkins-Harrington Company bought the hogs- in question from the appellee as independent contractors, and re- • sold them to the appellant, and that appellant paid said Hopkins-Harrington Company therefor.

The final question in the case is whether or not Hopkins-Harrington Company were the agents of the appellant in purchasing the hogs, or whether it bought the hogs from the ap-pellee on its own account, and resold them to the appellant.

There was evidence in the case tending to show that the Hopkins-Harrington Company bought stock generally on the Sioux Falls market, and paid for the same with checks drawn upon its own account in a bank at Sioux Falls. It also appears that it sometimes purchased stock on its own account, and also did business as agents in purchasing stock for others. Before the transaction in question, it had shipped stock to the appellant, and the customary course of dealing between the parties was for Hopkins-Harrington Company to draw a draft on the appellant at the time the shipment was made.« It was the contention of the appellant that the hogs in question were bought [146]*146by Hopkins-Harrington Company from the appellee upon its own behalf, and were resold to the appellant the same day, together with a numb.er of other carloads. There was evidence to the effect that the price agreed upon between the appellee and Hopkins-Harrington Company was 10 cents per hundred weight higher than the price to be paid therefor by Armour & Company.

The evidence tended to show, also, that the Hopkins-Harrington Company was in some financial difficulty, about the time of this transaction, and that the appellee, on the day in question, first refused to sell to the Hopkins-Harrington Company, because of an unpaid indebtedness for previous sales, amounting to some $10,000. However, upon the day of the sale, the Hopkins-Harrington Company gave appellee a check for this past indebtedness, which was cashed; and thereafter the hogs in question were sold. The following morning, the appellee called upon the Hopkins-Harrington Company for a check for the hogs in question, which was refused, it appearing that the credit of said company with the bank had been withdrawn, and that there were not sufficient funds in its account to meet the same. Thereafter, an alleged garnishment of the funds of Hopkins-Harrington Company in a bank at Sioux Falls was procured by the appellee.

At the time the hogs in question, together with others, were shipped to the appellant, a sight draft was drawn on the appellant, with bill of lading attached, which was turned over to a Sioux Falls bank by the Hopkins-Harrington Company, and wras honored and paid by the appellant. On the day following the purchase, the appellee wrote a letter to the appellant at Sioux City, inclosing an invoice for the hogs in question, and stating that said hogs “had been purchased and weighed to Armour & Company by a buyer at Sioux Falls, and on account of rumor concerning your buyer at that point, we hereby notify you not to pay for these hogs at Sioux Falls, South Dakota, but authorize you to pay us for these hogs here. ’ ’ There was evidence also to the effect that, on the evening of the day of the sale, an officer of the appellee had a conversation with an officer of the appellant at Sioux City, by telephone, and advised him of the sale of the two carloads of hogs that day at Sioux Falls, and that appellant would have to pay appellee for the same. The evi[147]*147dence also tends to show that thereafter the said officer advised the agent of the appellant of the attempted garnishment of the funds of Hopkins-Harrington Company at Sioux Palls, and that appellee would get the money in that manner.

There was a considerable amount of evidence offered by both parties, bearing on the question as to whether or not the hogs in question were purchased by the Hopkins-Harrington Company as agents for the appellant, or whether it purchased the same in its own behalf, and resold the same to the appellant; but the foregoing is a sufficient outline of the evidence, for the purpose of a consideration of the errors urged on appeal.

I. It is argued that the court erred in admitting testimony of the declaration of the alleged agent, as tending to establish the agency. The rule prohibiting the admission of such evidence is 'elementary. Gund Brewing Co. v. Peterson, 130 Iowa 301; Lavelleur v. Nugent, 186 Iowa 234.

One -of the employees of the appellee was asked, on direct examination, to state the character of the business in which the Hopkins-Harrington Company was engaged. The answer, was, “Buying hogs for the packers.” Objection to the question was overruled, as was a motion .to strike the answer. In view of the question in issue in this ease, as to the alleged agency of Hopkins-Harrington Company in making the deal in question, we think this answer was in the nature of a conclusion, and should have been excluded.

This witness was also asked, “Did you make any charge on your records, and if so, against whom?” This was objected to as “incompetent, irrelevant, and immaterial, and in no way binding on the appellant, no agency having been proven, and a self-serving declaration.” The objection was overruled, and the witness answered, “Armour & Company.” The objection should have been sustained. The charge which the appellee made upon its own books was not admissible in its own behalf to charge the appellant with the amount of this purchase. What the appellee did in making its own records, knowledge of which was not communicated to the appellant, was a mere self-serving declara[148]*148tion, which should not have been admitted; and, under the issues in the instant case, we think prejudice must be presumed on the admission of such erroneous testimony.

The appellee produced a former bookkeeper of Hopkins-Harrington Company as a witness, and proved by him that, at the time of the sale of the hogs in question, an invoice of shipment was made out in triplicate, the original of which, he testified, was attached to a. draft, and one copy mailed to Armour & Company and the other retained in the office of Hopkins-Harrington Company. He identified one of said copies, and the same was offered in evidence, over appellant’s objections. The particular point urged is that it was error to receive the exhibit, because of the statement therein contained, “Bought for the account of Armour & Company, ’ ’ and the words, ‘ ‘ Commission $25.00.” It is now contended that this was in the nature of a declaration on the part of the agent tending to prove the agency, and was, therefore, inadmissible. We do not think the objection to the admissibility of this exhibit was well taken. The appellee had a right to show the transaction between the parties at the time, and what was done between them in connection with the sale of the two carloads of hogs. This was not the declaration of an alleged agent to a third party, but was the invoice proven to have been forwarded by the alleged agent to his alleged principal, and was admissible as showing how the transaction was conducted between these parties.

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