Ziebell v. Lumbermens Printing Co.

127 P.2d 677, 14 Wash. 2d 261
CourtWashington Supreme Court
DecidedJuly 17, 1942
DocketNo. 28519.
StatusPublished
Cited by22 cases

This text of 127 P.2d 677 (Ziebell v. Lumbermens Printing Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ziebell v. Lumbermens Printing Co., 127 P.2d 677, 14 Wash. 2d 261 (Wash. 1942).

Opinion

*262 Driver, J.

This is an action for libel. Three separate demurrers, interposed by defendants to the amended complaint, were sustained. Plaintiffs declined to plead further, and the court entered its order dismissing the action. This appeal followed. For convenience, A. G. Ziebell will be referred to in this opinion as though he were the only appellant.

The amended complaint alleged, in substance, that appellant was one of the commissioners of public utility district No. 1 of Snohomish county and also the president of the Puget Sound utility commissioners association, a voluntary association composed of the commissioners of public utility districts located in the portion of the state served by the Puget Sound Power and Light Company; that such association constituted a medium through which the public utility districts were attempting to negotiate for the purchase of the electrical properties of the power company; that, in conducting such negotiations, the districts were represented by a committee known as the Puget Sound negotiating committee, of which appellant was a member and the chairman.

That, at the time of the publication of the newspaper article in question, appellant was entrusted with the duty of formulating and recommending plans for effecting the purchase of the power company’s properties and, also, for the raising of the requisite funds by means of revenue bonds to be issued and sold by the several utility districts concerned; that one of the most important markets for such bonds existed among certain investment and bond brokerage firms with offices on or near Wall street in New York city, and commonly and popularly referred to as “Wall street”; that other private financial institutions, not connected with Wall street, and the United States Reconstruction Finance Corporation were also potential purchasers of *263 such bonds; that, in order to market the districts’ bonds on the most advantageous terms and to obtain the lowest interest rates, it was appellant’s duty to keep himself free from the domination, control, or influence of any possible purchaser so that his investigation and report would.be strictly objective and impartial, and that all such matters were well known to appellant’s constituents and to the public generally, including the readers of the article in question.

That, in publishing and circulating the newspaper article, respondents charged, and were understood by readers of the article generally to charge, appellant with improper conduct in office and with being actuated by wicked, corrupt, and selfish motives, in that he was actually and admittedly the agent of and working for the benefit of a potential group of purchasers of the districts’ bonds, the interests of which were adverse to those of the districts which appellant represented, thus imputing to appellant a course of double dealing; and that all statements made concerning the appellant in such newspaper article were false.

The article which, according to the allegations of the amended complaint, the respondents caused to be published in a weekly newspaper in Seattle, reads as follows:

“P. U. D. Probe
“Grange News, local farm paper and ardent advocate of the Wall-Street-sponsored PUD’s suggests a state investigation of possible ‘power trust’ activities in connection with Initiative 139. This paper heartily approves such a move, and joins Grange News in urging action thereon by the State. We agree with Grange News that there is no lack of evidence bearing on the subject. Some of this evidence appeared in Grange News itself not long ago, when a Mr. Ziebell, head of the P. U. D. Commissioner group, got mad at Wall-Street-Wangler Guy C. Myers long enough to expose some of Myers’ skullduggery in putting over *264 Utility Districts. He also told why it was being done. By all means, let Mr. Ziebell and Mr. Myers, confessed tools of Wall Street, be the first witnesses.
“Next let’s find out who’s back of this State Grange anti-popular-vote campaign. All initiative 139 would do is to submit P. U. D. bond issues to a vote of the people. Just why and on whose behalf and for what consideration are Grange officials opposing so wholly democratic a procedure? Certainly not for farmers, since to an average farmer his power and light bill is so minor an item that, even if he got it free, he wouldn’t be helped much. If not for farmers, then for whom are the Grange bosses working?
“As we start our probe, let’s look over an average issue of Grange News, about half of whose reading space is devoted to opposing popular votes on P. U. D. expansions. Let’s find out who pays for the full page ads of the Washington State Grange Power Committee.’ Let’s find out who constitute and who controls that committee. Does it consist of farmers, or of stooges for the Power Trust? Are its members actually friends of public power, or are they some of the Myers and Clucks whose connections with Wall Street the Grange News itself has exposed? Let’s find out why just about the only real advertising contract in the Grange News is that of Puget Sound Power and Light Co. Let’s ask ourselves if, just possibly, there isn’t a pretty smelly nigger in this PUD woodpile. Let’s even look into the possibility that the Grange officers and paper, wittingly or otherwise, may be mere tools or dupes employed to put over a ‘sellout’ of our publicly owned power system that will make the smelly old Seattle streetcar deal look like a Saturday bargain special by contrast.
“Getting well under way, let’s look into a few of these PUD’s themselves, about which so much boasting is done. Let’s find out why the Grays Harbor P. U. D. bought out a private plant at a price ($2,800,000.00) which the State Department of Public Service had previously found was ‘watered’ to the tune of a half million dollars. Let’s ask why, to the purchase, they issued bonds in the amount of $3,500,-000.00, seven hundred thousand dollars more than *265 the purchase price. Let’s ask why those bonds sold in Seattle for $106.00, but the P. U. D. got only $100.00. Let’s find out who got a cut, and how much, for putting over that sweet deal for the Power Trust.
“Then let’s find out why another P. U. D. is now employing the manager of the Grays Harbor set-up to act as an ‘advisor’ at a high fee. Let’s find why a certain P. U. D. gave a $5000.00 ‘retainer’ to a public official who, if not properly ‘persuaded,’ might have inconveniently dropped a monkey wrench into their proposed purchase of power trust properties at an exorbitant figure. Let’s ask why another P. U. D. paid, and charged to its expense account, the campaign expenses of a public official.
“Let’s find out, to put it baldly and straight-from-the-shoulder, if it isn’t the Power Trust that pulls the P. U. D. strings, with the Grange, the so-called ‘Grange Power Committee,’ Senator Bone and a lot of other puppets merely doing what they’re told.
“By all means, Grange News, let’s have an investigation — and let’s have it before you and the Power Trust put over another Street-car Deal on us. Let’s find out just who is opposing Initiative 139, and why.

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Cite This Page — Counsel Stack

Bluebook (online)
127 P.2d 677, 14 Wash. 2d 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ziebell-v-lumbermens-printing-co-wash-1942.