St. Louis Clothing Co. v. J. D. Hail Dry Goods Co.

56 S.W. 1112, 156 Mo. 393, 1900 Mo. LEXIS 316
CourtSupreme Court of Missouri
DecidedMay 15, 1900
StatusPublished
Cited by3 cases

This text of 56 S.W. 1112 (St. Louis Clothing Co. v. J. D. Hail Dry Goods Co.) 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
St. Louis Clothing Co. v. J. D. Hail Dry Goods Co., 56 S.W. 1112, 156 Mo. 393, 1900 Mo. LEXIS 316 (Mo. 1900).

Opinion

MARSHALL, J.

This is an action for libel. Tbe two corporations are engaged in business in Sedalia, tbe plaintiff in tbe clothing business and the defendant in the dry goods business. Roth dealt in ladies’ cloaks and wraps and in this regard were competitors. Eor about two years prior to 1896 the defendant had been selling in Sedalia cloaks made by S. Rothschild & Ero. of New York. In August, 1896, the secretary of tbe plaintiff met the Rothschilds’ agent for the State of Illinois, in Chicago. That* agent bad sold bis samples, but be and tbe secretary went to Milwaukee and met Rothschilds’ agent for Wisconsin. The meeting resulted in tbe secretary buying some cloaks from that agent. Tbe plaintiff testifies that be was to have tbe exclusive privilege of selling tbe Rothschilds’ cloaks in Sedalia. Tbe Wisconsin agent denies this, and says tbe plaintiff wanted such an exclusive privilege but be told him he had no power to grant it and that he must see Rothschilds’ agent for Missouri who had power to grant it if the Rothschilds approved it. He further says the secretary of plaintiff then wanted to know if any goods had been sold by the Rothschilds to any one else in Sedalia, and he telegraphed to the Rothschilds and they answered in the negative. On tbe 9th of September the plaintiff wrote to tbe Rothschilds saying tbe defendant was selling their cloaks, and that they had broken their contract with plaintiff, giving it the exclusive right to sell their cloaks, and demanded a discount of ten per cent off of plaintiff’s bill, under penalty of plaintiff replacing their goods ■with others. On September 11th, tbe Rothschilds answered saying tbe plaintiff might be right from its standpoint, but that tbe claim was exorbitant, and saying at the time they sold to plaintiff they had not sold and did not contemplate selling to anyone else, but that rather than have any 'trouble they would allow a discount of five per cent on tbe plaintiff’s bill when due. On September 11th, the plaintiff wrote. [396]*396Rothschilds insisting upon ten per cent discount and asking an answer by wire. On September 16th, Rothschilds wrote plaintiff, “Will allow you ten per cent on present indebtedness when paid.” On September 19th, the plaintiff published in the Sedalia papers the following advertisement:

“A STUPENDOUS CLOAK SALE.
S. Rothschild & Bro.
“Fine jackets and capes to be slaughtered. Twenty per cent discount, 1-5 off from regular price.
“Never before in modern merchandising in a regular channel has it fallen to the lot of any merchant to be able to retail new merchandise at the beginning of the season at above named discount.
“While this sale of ours may work hardships on our competitors, it is certainly a boon to our customers. The latter part of July when placing our cloak sale order with S. Rothschild & Bros., one of the largest cloak manufacturers and importers of New York, we had obtained from them the sole agency for Sedalia of their entire line for this season (the agency has been secured in order to protect our patrons in the way of giving them exclusive styles). In due time we received the goods, marked them, and placed them on sale, when, to our surprise, we discovered that the above-named manufacturers had broken their contract "with us, and sold to a prominent dry goods firm of this city, their goods also. In answer to a damage claim made by us we received the following letter which explains itself:
“ 'S. ROTHSCHILD & BRO.
“ 'Nos. 428, 430 and 432 Broadway.
“ 'Cloaks, Wraps, Suits and Waists.
“ 'New York, September 17,1896.
" 'St. -Louis Clothing Co., Sedalia, Mo.
“ 'Dear Sirs: — We have your favor of the 9th inst., and while you may be right from your standpoint, we beg to [397]*397say that the claim ycm make seems rather exorbitant. At the time you bought the goods we had not áold anybody else in Sedalia, neither did we contemplate doing so. However, rather than have any disagreement with you, we will, at the time you pay your bill to us, allow you the claim.
“ ‘Please let us know by return mail that this is satisfactory.
•“ ‘Yery respectfully yours, S..Rothschild & Bro.’
“Commencing this day we will give a discount of 20 per cent, or 1-5 off on all jackets, and capes, insuring you thus wraps at about manufacturer’s cost. S. Rothschild & Bro.’s loss will be your gain.
“Come early, make your selection, as no time this season will you be able to duplicate our offer.”

On September 19th, the defendant corporation wrote Rothschilds as follows:

“Sedalia, Mo., September 19, 1896.
“S. Rothschild & Bro., New York.
“Gentlemen: — In this morning’s issues of our local paper appears an advertisement of the St. Louis Clothing Co. (a copy of which is inclosed) containing a letter represented to be from your house.
“Is this a fake simply, or is it true, is this letter genuine ? Have they any of your goods ? Have they ever had? Kindly answer by wire QUICK.
“If this is a fake, pure and simple, will you send a letter for publication by first mail. Hurry.”

On September 22d, Rothschilds telegraphed the plaintiff offering a discount on its bill of twenty-five per cent if it would send New York exchange for what it owed them at once, adding that plaintiff’s check would not do, and saying if plaintiff was solvent it would accept the offer, and if it did not do so they would regard it. as indicative of financial weakness.

To this the plaintiff replied on the same day offering to [398]*398send New York exchange that day if the Nothschilds would allow one-tliird off from the bill or it would pay the bill when it fell due. The Nothschilds' replied on the same day asking plaintiff to mail a copy of its last inventory with full information as to its present financial condition, and if unfavorable they would accept plaintiff’s offer of cash with one-third off, but added, “no merchants valuing their credit would refuse to pay loss twenty-five per cent. We withdraw our offer until we have your reply.” On the same day the plaintiff replied refusing to send statement and renewing the offer of cash with one-third off, or to pay at maturity, on September 23rd, the Nothschilds telegraphed plaintiff expressing astonishment at its refusal to accept their offer and to send statement, and offering to take cash with one-third off if plaintiff was unable to pay any more, or to allow the plaintiff to make a statement to the dry goods clearing house examiner or the commercial agencies, and reserving the privilege of replevying if plaintiff’s reply was unsatisfactory. On the same day the plaintiff telegraphed Nothschilds standing by their offer of the day before and saying it would be withdrawn if not accepted that day. On September 24th, the Nothschilds telegraphed plaintiff: “Your offer declined and ours withdrawn.” Oii the same day Nothschilds by wire offered their account against plaintiff for $1,118.50 to the Third National Bank of Sedalia, for $800.

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Bluebook (online)
56 S.W. 1112, 156 Mo. 393, 1900 Mo. LEXIS 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-clothing-co-v-j-d-hail-dry-goods-co-mo-1900.