Rice v. State Ex Rel. Short

1924 OK 1112, 232 P. 807, 108 Okla. 4, 1924 Okla. LEXIS 692
CourtSupreme Court of Oklahoma
DecidedDecember 9, 1924
Docket15763
StatusPublished
Cited by20 cases

This text of 1924 OK 1112 (Rice v. State Ex Rel. Short) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. State Ex Rel. Short, 1924 OK 1112, 232 P. 807, 108 Okla. 4, 1924 Okla. LEXIS 692 (Okla. 1924).

Opinion

NICHOLSON, J.

This is a suit by the *5 s£ate of Oklahoma on relation of George F. Short, Attorney General, seeking to perpetually enjoin Carl Hice and J. E. O’Neil, members of the State Board of Public Affairs, constituting the Board of Prison Control, from entering into a certain contract with the Cherokee Manufacturing Company, a corporation, organized and doing business under and by virtue of the laws of this state, whereby the state agreed to manufacture at the penitentiary, and sell to the Cherokee Manufacturing Company certain shirts. To the petition filed the defendants interposed a general demurrer, which was by ’the court overruled, and the defendants electing to stand thereon, the court entered its decree perpetually enjoining the defendants from acting under, or in anywise attempting to perform said contract, or any other contract of similar purport; from this decree the defendants have appealed.

The contract involved, omitting the formal parts, read as follows:

“Section 1. The state intends to engage in the business of the manufacture and sale of work shirts at its penitentiary or prison at McAlester, Okla., and it hereby agrees to sell to the company, and the company, hereby agrees to purchase from the state a minimum of three hundred (300) dozen and a maximum of four hundred (400) dozen work shirts daily (Sundays and legal holidays excluded), so long as this contract shall continue in existence, such shirts to be of the general style and of quality of material and manufacture as good or better than the sample shirts which are hereto attached and made a part of this contract.
“Section 2. All shirts sold hereunder Shall be delivered by the state to the company f. o. b. cars McAlester, Okla., packed and ready for shipment and the price therefor, subject to variations in prices for change in market cost of materials, as hereinafter set forth, shall be as follows:
‘‘Chambray and indigo two pocket shirts, as per sample hereto attached and made a part of this contract, $6.01% per dozen for coat shirts and $5.96% per dozen for shirts other than coat shirts.
“Khaki and black! twill or drill'cloth two pocket shirts, as per samples hereto attached and made a part of this contract, $6.06% per dozen for coat shirts and $6.01% per dozen for shirts other than coat shirts.
“It is understood and agreed that the above prices are based upon a market cost for materials as follows: For cloth 28 inches wide, 13e per yd., and other idfchs in proportion; For trimmings, including material for packing, 50c per dozen shirts; and in the event of changes in market cost of such materials the price to be paid for shirts hereunder shall be increased or- decreased, as the case may be, by an amount equivalent to the actual increase or decrease in cost of shirts due to such market changes; provided, however, the state at any time it shall so desire, Shall have the right, from time to time, to elect to sell and deliver the shirts on a cost plus basis, in which event the following scale of prices shall • govern: For chambray and indigo, two pocket shirts, as per samples hereto attached ‘cost of materials’ as hereinafter defined plus 87c per dozen, for coat shirts and 'cost of materials’ as hereinafter defined plus 82c for shirts other than coat shirts. For khaki and black twill or drill cloth two pocket shirts, as per sample hereto attached and made a part of this contract ‘cost of materials’ as hereinafter defined plus 92e per dozen for coat shirts and ‘cost of materials’ as hereinafter defined, plus 87c for shirts other than coat shirts.
“Payment shall be made on the 15th day of each calendar’ month for all shirts sold and delivered hereunder during the preceding calendar month.
“Section 3. The phrase ‘cost of materials’ as used in section 2 of this contract shall be deemed to have the specific meaning, and shall be defined, ,as follows: Actual cost, -after deduction of discounts taken on purchases, without addition for commission, if any paid, of all the things furnished pursuant to section 4 (a) of this contract, and actually used as a part of, or in the manufacture of, or in the packing and preparation for shipment of, shirts sold hereunder to the company during a given calendar month, —plus freight to McAlester, Oklahoma.
“Section 4. (a) The state shall furnish all materials, fabrics, cloth, buttons, thread and other articles used or intended for use in the manufacture of shirts and all labels, wrapping paper, twine, boxes and other articles used or intended for use in packing and preparing shirts for shipment hereunder; and at all times shall keep on hand in storage available for use in its business of manufacturing shirts to be sold to the company under this contract not less than the equivalent of four (4) weeks supply in addition to the goods in course of manufacture.
“(b) The materials and articles in this section mentioned shall be purchased at the lowest possible price and on the most favorable terms, and no purchase thereof shall be made until after the price and quality in each instance shall have been submitted to the company for its approval and shall have been approved by its authorized representative in writing provided the state may proceed with any such purchase without such approval as to price in any case when the company for a period of ten (10) days af-iter the submission of such purchase to ilt shall fail either to approve the same or *6 to find and make available to the state at the same or a less price a sufficient supply of, the article in question.
“(c) If at any time the board shall not have available sufficient funds to enable it to maintain a supply of the articles mentioned in paragraph (a) of this section, the company, upon request, agrees to furnigbi to the board all such articles necessary for the manufacture of the shirts hereby purchased. During such time the company shall pay for all shirts purchased hereunder the prices above specified except that the ‘cost of materials’ as defined in section 3 hereof shall not be included in such prices.
“Section 5. In addition to the shirts agreed to be sold and purchased hereunder, the company shall have the refusal of all other shirts which the state may manufacture for sale- at said plant at the same price as offered by any other bidder, which refusal shall be exercised within thirty (30) days after the board shall notify the company in writing.
“Section 6. (a) The company has leased and by these presents does hereby lease and, let to the state for its use in its work shirt manufacturing plant the machinery, equipment, tools and articles which are set forth in detail in the schedule which is hereto attached, marked' for its identification “Exhibit A” and made a part hereof. The term of this lease shall expire at the termination of this contract. This lease shall be for a monthly rental of $400, which shall be payable upon the 15th day of each calendar month; such rental shall be deducted each month by the company from the amount due the state hereunder.

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Bluebook (online)
1924 OK 1112, 232 P. 807, 108 Okla. 4, 1924 Okla. LEXIS 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-state-ex-rel-short-okla-1924.