State ex rel. Young v. Standard Oil Co.

126 N.W. 527, 111 Minn. 85, 1910 Minn. LEXIS 656
CourtSupreme Court of Minnesota
DecidedMay 20, 1910
DocketNos. 16,303—(2)
StatusPublished
Cited by30 cases

This text of 126 N.W. 527 (State ex rel. Young v. Standard Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Young v. Standard Oil Co., 126 N.W. 527, 111 Minn. 85, 1910 Minn. LEXIS 656 (Mich. 1910).

Opinions

O’Brien, J.

In this action brought upon the relation of the attorney general,, it is sought to forfeit the license to transact business in Minnesota, heretofore issued to defendant, a foreign corporation. The action is based upon an alleged violation of chapter 269, Laws 1901, entitled “An act to prohibit unfair discrimination between different sections, communities or localities, unfair competition, and providing penalties therefor.” Section 1 of the act is:

“Any person, firm, company, association, or corporation, foreign or domestic, doing business in the state of Minnesota and engaged in the production, manufacture, or distribution of petroleum or any of its products that shall intentionally, or otherwise, for the purpose-of destroying the business of a competitor or creating a monopoly in any locality, discriminate between different sections, communities or cities of this state, by selling such commodity at a lower rate in. one section, community, or city than is charged for such commodity by said party in another section, community or city, after making due allowance for the difference, if any, in the test or quality and in the actual cost of transportation from the point of production, if a raw product, or from the point of manufacture, if a manufactured product, shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared to be unlawful.”

The complaint, a demurrer to which was sustained, alleged the engaging by defendant in refining, marketing, and otherwise dealing-[93]*93in petroleum and its products, of which kerosene oil was one. The general method adopted by defendant for carrying on its business, it is alleged, “* * * is by means of railroad carrying tanks, in which said products are transported from the factories and refineries to the various distributing places in the state, where the same are placed in storage tanks and are thereafter distributed to the consumers and purchasers by means of tank wagons. That for a long time such has been and now is the method of defendant, and for the purposes aforesaid said defendant maintains an extensive system of carrying tallies and has storage tanks and tank wagons in the various villages, towns, and cities of the state.” Then follow allegations of discrimination in the prices charged for kerosene in different localities, with intent to destroy the business of competitors and create a monopoly.

The demurrer alleged generally a failure to state a cause of action, and specially that the statute contravened provisions of the state and federal constitutions, as will be hereafter stated.

1. The statute makes it the duty of the secretary of state to revoke the permit of a foreign corporation violating the act, and to report the violations to the attorney general, whose duty it shall be to institute proceedings to oust the offender if, after the revocation, it shall continue business in the state. The defendant claims, therefore, the complaint fails to state a cause of action, in that it shows no revocation by the secretary of state, which it is insisted is a prerequisite' to the bringing of this action by the attorney general.

Although a state may, when its action does not amount to an interference with interstate commerce, exclude foreign corporations from its territory, when the laws of the state provide for their admission, and a corporation complies with those regulations and pays the required fee, it secures from the state a franchise to transact business therein. A wrongful act which, if committed by a domestic corporation would render it liable to a forfeiture of its corporate existence, will render a foreign corporation committing it liable to a forfeiture of its franchise to do business in the state whose laws it violated. The duties and powers of the attorney general are similar in each instance, and while the - procedure provided by [94]*94chapter 269, Laws 1907, may be followed, it is not exclusive. .Thp constitution and laws of this state have vested in the attorney general original discretion which he may exercise in instituting proper judicial proceedings to secure the enforcement of law. State v. Robinson, 101 Minn. 277, 112 N. W. 269, 20 L. R. A. (N. S.) 1127.

2. It is argued that the act fails to conform to the requirements of section 27, article 4, of the constitution, in that, while the title refers to unfair discriminations generally, the act itself only prohibits-such practices in petroleum and its products. The subject of the act is discrimination, and, while the title is broad enough to have justified an act of much wider scope, it sufficiently complies with the requirements of the organic law. Megins v. City of Duluth, 97 Minn. 23, 106 N. W. 89; Watkins v. Bigelow, 93 Minn. 210, 100 N. W. 1104; State v. Porter, 53 Minn. 279, 55 N. W. 134; State v. Cassidy, 22 Minn. 312, 21 Am. Rep. 765.

3. The defendant holds its license subject to the condition th^t it will in the conduct of its business conform to the valid laws of the-state, whether enacted before or after the issuance of the license. State v. Creamery Package Mnfg. Co., 110 Minn. 415, 126 N. W. 126. As the allegations of the complaint show a wilful violation by defendant of the law referred to, the validity of that enactment is the principal question presented by this appeal. The demurrer was sustained upon the grounds “(1) that chapter 269, Laws 1907,. is repugnant to and in contravention of section 1 of the fourteenth amendment of the constitution of the United States; and (2) that, said chapter 269, Laws 1907, is repugnant to and in contravention of sections 33 and 34 of article 4 of the constitution of the state of Minnesota.”

We cannot better state the reasons advanced to support this holding than by quoting from the memorandum which the learned trial judge attached to his order. Amongst other things he said: “The vice in the law is that it singles out producers, manufacturers, and distributors of ‘petroleum or any o.f itá products,’ and makes it a crime for such producers, manufacturers, and distributors to, for the purpose of creating a monopoly, discriminate between different sections or cities by selling petroleum or any of its products at a different price [95]*95in different sections or cities of the state, while producers, manufacturers, and distributors of all other commodities may still, for the purpose of creating a monopoly, discriminate between different sections or cities. It is worthy of note that the law applies to 'petroleum or any of its productsthat is, not only to crude petroleum, but to the refined oils, and to the hundreds of articles of common use that are products of petroleum, manufactured by different concerns, and distributed by every grocer and druggist in the state. * * * I fail to see any distinction or any reason, except a purely fanciful and illusory one, for such a classification as is made by this law. It therefore follows that the act is void, as special or class legislation.”

The enactment under consideration was made under the power and duty of the legislature to enact such laws as are required for the peace, safety, health, and prosperity of the people generally, and unless beyond doubt it violates a specific provision of the state or federal constitution the only power of the court is to interpret and enforce its provisions. Lommen v. Minneapolis Gaslight Co., 65 Minn. 196, 68 N. W. 53, 33 L. R. A. 431, 60 Am. St. 450.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Housing & Redevelopment Authority v. City of Minneapolis
198 N.W.2d 531 (Supreme Court of Minnesota, 1972)
Kaljuste v. Hennepin County Sanatorium Commission
61 N.W.2d 757 (Supreme Court of Minnesota, 1953)
State v. Lanesboro Produce & Hatchery Co.
21 N.W.2d 792 (Supreme Court of Minnesota, 1946)
Northern Pacific Ry. Co. v. Weinberg
53 F. Supp. 133 (D. Minnesota, 1943)
State v. Marcus
299 N.W. 241 (Supreme Court of Minnesota, 1941)
C. Thomas Stores Sales System, Inc. v. Spaeth
297 N.W. 9 (Supreme Court of Minnesota, 1941)
Ed. Schuster & Co. v. Steffes
295 N.W. 737 (Wisconsin Supreme Court, 1940)
State Ex Rel. Pearson v. Probate Court
287 N.W. 297 (Supreme Court of Minnesota, 1939)
State v. Langley
84 P.2d 767 (Wyoming Supreme Court, 1938)
Mesaba Loan Co. v. Sher
282 N.W. 823 (Supreme Court of Minnesota, 1938)
State v. Northwest Poultry & Egg Co.
281 N.W. 753 (Supreme Court of Minnesota, 1938)
State Ex Rel. Peterson v. District Court
264 N.W. 227 (Supreme Court of Minnesota, 1935)
City of Newnan v. Atlanta Laundries Inc.
162 S.E. 497 (Supreme Court of Georgia, 1932)
Midwest Mutual Insurance v. De Hoet
222 N.W. 548 (Supreme Court of Iowa, 1928)
Town of Kinghurst v. International Lumber Co.
219 N.W. 172 (Supreme Court of Minnesota, 1928)
State v. Fairmont Creamery Co.
210 N.W. 163 (Supreme Court of Minnesota, 1926)
Flour City Fuel & Transfer Co. v. Young
185 N.W. 934 (Supreme Court of Minnesota, 1921)
Lodoen v. City of Warren
178 N.W. 741 (Supreme Court of Minnesota, 1920)
Seamer v. Great Northern Railway Co.
172 N.W. 765 (Supreme Court of Minnesota, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
126 N.W. 527, 111 Minn. 85, 1910 Minn. LEXIS 656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-young-v-standard-oil-co-minn-1910.