Rogers v. Union Iron & Foundry Co.

150 S.W. 100, 167 Mo. App. 228, 1912 Mo. App. LEXIS 639
CourtMissouri Court of Appeals
DecidedJuly 19, 1912
StatusPublished
Cited by6 cases

This text of 150 S.W. 100 (Rogers v. Union Iron & Foundry Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Union Iron & Foundry Co., 150 S.W. 100, 167 Mo. App. 228, 1912 Mo. App. LEXIS 639 (Mo. Ct. App. 1912).

Opinion

CAULFIELD, J.

(after stating the facts).— 1. There is-no merit in defendant’s contention that plaintiffs must fail in their suit because their assignors were “doing business” in contravention to Secs. 30-39 and 3040, R. S. 1909. It may be conceded, without deciding, that such assignors were “doing business” within the meaning of those sections, but in our opinion whatever business was so done constituted interstate commerce and it has been held that said sections are null and void and should be dis-" [245]*245regarded in so far as they apply to and affect foreign corporations engaged in interstate commerce. [International Text Book Co. v. Gillespie, 229 Mo. 397, 129 S. W. 922.] Defendant’s counsel concedes in his brief that there was no evidence that plaintiffs’ assignors were doing other than an interstate business, unless it be in the making of the contracts in suit or the dealings in' respect of the so-called “diverted shipments. ’ ’

As to the contracts he contends that as they are executory and do not expressly require the iron to be brought from another State directly to the purchaser in the State, they must be interpreted to contemplate the sale and delivery in Missouri of iron bought or stored in Missouri. In other words he would have us hold that the contracts contemplate intrastate commerce because not expressly requiring interstate shipments. We do not feel warranted in so interpreting the contracts. In the first place, the iron was to be that which was manufactured by the respective sellers,' for one contract called for iron known as “Sheffield No. 2 Fdy.” and the other for “Napier No. 2 Fdy.” The defendant clearly understood that such designations meant iron of the seller’s own manufacture, for it appears from its president’s testimony that when he had heard that the Sheffield Company was in the hands of a receiver and that they could not furnish iron, he had vehemently asserted to plaintiff’s representative: “I bought Sheffield iron; we don’t want iron from any other locality down there; we want Sheffield iron.” Again, at the last trial, defendant’s attorney objected to the introduction of certain bills of lading showing that the Sheffield Company- had shipped iron to various parties about the time this contract was breached, stating that one of the points in the case is that the Sheffield Company “had no iron of their own,” that there was no showing .that the iron called for in the bill of [246]*246lading was Sheffield iron, and that the witness conld not testify that the iron called for in the hill of lading was “actually made at the Sheffield Company’s furnace.” Neither of the sellers had any plant or furnace in the State of Missouri, so such manufacturing or smeltering must have been intended to be done elsewhere; that is, at their furnaces in Sheffield, Alabama, and Napier, Tennessee, respectively. ■ The contracts show that the iron was to be “shipped,” for they both speak of shipment and freight charges. If there was any doubt as to this, it would be dispelled by the letters of the parties subsequently exchanged and by the provisions of the contracts that delivery was to be “f. o. b. cars St. Louis.” “F. o. b. means, free on board the vessel, cars or other conveyance which is to transport it to the buyer.” [3 Words & Phrases, p. 2636 and cases cited.] St. Louis was the place where the buyer was located, and must have been intended as the destination of the shipment. So we have it that the iron contracted for was to be manufactured by the sellers in other States and shipped by them on cars into Missouri, there to be delivered on board such cars to the buyer. This seems to effectively exclude the idea suggested by defendant’s counsel that the contracts contemplated the delivery of iron “bought in Missouri or stored here.” But if we had any doubt in that respect it would be our duty to resolve it in favor of the plaintiffs, for one of the rules for interpreting contracts is, that, “if the terms admit of two meanings, or two ways of effecting the object, by one of which the thing would be unlawful and by the other lawful, the latter construction must be adopted.” [Bishop on Contracts, Sec. 392.] We are also of the opinion that as the contracts contemplated interstate commerce alone, they were part of interstate commerce so as to be without the lawful scope of the statutory provisions in question.. A statute could not more [247]*247effectually, if not directly, apply to interstate commerce than hy rendering void all contracts for the sale and delivery of the goods to he transported from one State to another. If our statute has that effect, then, under the decision of our Supreme Court, to that extent it is void.

As to the dealings of the plaintiff as agents of the seller in respect of the so-called “diverted shipments,” the evidence discloses that in several instances the Sheffield Company and the Napier Company had shipped cars of iron into St. Louis for delivery to persons or concerns which had previously contracted for such iron, but on arrival in St. Louis, either in the railroad freight yard or at the foundry of the purchaser, it was discovered by the plaintiffs that the purchaser was not “good pay” or rejected the shipment. Then the car or cars were taken by the plaintiff as agents of the seller and delivered to other persons or concerns with whom likewise the seller had made a contract for the sale of iron before such iron had arrived in the State and such delivery was made to such other person or concern under such preexisting contract. Such diverting of shipments from one previously-secured customer to another previously-secured customer was not an intrastate transaction as .distinguished from an interstate transaction. In the first place, such iron had not passed from the control of the importer and still remained in the car transporting it, which may he likened unto the original package, and remained the subject of interstate commerce until delivered to the second customer, [See State v. Emert, 103 Mo. 241, 15 S. W. 81; Leisy v. Hardin, 135 U. S. 100; Miller & Co. v. Goodman, 91 Texas, 41, 40 S. "W. 718.] And in the second place, the second sale had been made at the time when the goods were outside of the State of Missouri for the purpose of introducing them into the latter State and therefore the transaction constituted interstate com[248]*248merce. [State v. Looney, 214 Mo. 216, 97 S. W. 934, 99 S. W. 1165; State v. Emert, supra.] We may also add that, in our opinion, such diverting of shipments caused in the way it was caused cannot possibly he distorted into the doing of business outside of interstate commerce business. Such diverting was necessary to the carrying on of interstate commerce business and cannot be penalised without seriously hampering such interstate commerce business. It, too, . then, must be regarded as without the scope of our constitutional provisions.

II. Both parties agree that the measure of plaintiff’s damages is the difference between the contract price and the market value, but the question of the time when the market value was to be taken is a matter of dispute. The trial judge took it in December, 1907, when the market price was four dollars and seventy-five cents per ton less than the Napier contract price and five dollars per ton less than the Sheffield contract price. Defendant contends that it should have been taken in August, 1907, when the market price was greater than the contract price.

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Bluebook (online)
150 S.W. 100, 167 Mo. App. 228, 1912 Mo. App. LEXIS 639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-union-iron-foundry-co-moctapp-1912.